What is the optimal torque design in order to minimize

Assignment Help Financial Management
Reference no: EM131905143

An aircraft control actuator is part of the flight control system that enables an airplane to fly. It is important that the actuators are reliable. Reliability can be defined as the probability a system is functioning, so it is a number between 0 and 1. One way to l increase the reliability of the actuator is to increase the torque. The reliability R as a function of the maximum torque T in Newton-meters) is given by

R(T)= 0.91 exp(0.027T)

The development and installation cost as a function of reliability equals $1,950 $10,026 ln R, which will be paid immediately.

Maintenance on the actuator will occur in year 5 and in year 10. In each year, the maintenance cost is

[$1,400 / ln(1.45R)]

Assume the interest rate is 15%.

1) What is the optimal torque design in order to minimize the discounted lifecycle cost of the actuator? What is the reliability of the actuator? (You do not need to calculate annual equivalent cost, but you do need to calculate the present value of the costs.)

2) Assume the airplane manufacturer has a requirement of at least 0.99 reliability. Does your answer in part a achieve that reliability? If not, what torque would you recommend that meets this requirement and keeps the discounted lifecycle cost as low as possible?

3) What is the difference in discounted lifecycle costs between parts a and b? Note: A decision maker who is responsible for determining what the reliability should be for the actuator can consider whether increasing the reliability is worth the additional cost.

Reference no: EM131905143

Questions Cloud

What is the percentage change in the bonds price : How much of each of these bonds will you want to hold to both fully fund and immunize your obligation?
Develop a schedule of accounts payable : Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger
Provide the percentage of exchange rate volatility : Please show the share market return(%) from April 2012 to April 2017 and risk(%), where, the return is measured by mean of change in share price.
What could be the underlying causes of demand-pull inflation : What could be the underlying causes of demand-pull inflation? In cost-push inflation, cost rises are ‘exogenous'. What does that mean?
What is the optimal torque design in order to minimize : What is the optimal torque design in order to minimize the discounted lifecycle cost of the actuator? What is the reliability of the actuator?
What is the formula for calculating the multiplier k : Define net investment. What does the accelerator theory show? What does the multiplier show? What is the formula for calculating the multiplier, K?
What amount of cash was collected by ferrell : During the first year of operation, 2014, Ferrell's Appliance recognized $261,000 of service revenue on account. What amount of cash was collected by Ferrell
Describe the four physiographic regions of europe : This assignment requires you to write essays in response to all of the following: Part A In your own words, describe the four physiographic regions of Europe.
Compute the increase or decrease in net income : Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd