Академический Документы
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Культура Документы
Please read over the entire exam first thing so that you can make a rational decision about how to
budget your time. Please think calmly and logically so that your answers reflect your true level of
knowledge.
Please turn in any pages from this booklet that you have marked up and be sure
to put your name on them!
1.) (35 points) Elroy (being inspired by his love of peanut butter, jelly, and SpamTM sandwiches) is
considering building a plant to produce either peanut butter or grape jelly.
a. Which project will lead to a greater net present worth (NPW)?
b. Would either project be worth pursuing? (Just do a simple comparison of TCI to NPW).
For both projects assume operation at full capacity in all years of production, use straight line
depreciation, take the tax rate to be 35%, and assume that the working capital is recovered as lump sum
at the end of the project. The NPW should be calculated using a nominal discount (interest) rate of 6%,
with discrete year-end cash flows and discrete annual compounding.
3.) (20 points) A piping system with the following system curve data is to be installed
a. Which of the two Bell & Gossett pumps (pump curves supplied) would be appropriate if
your required flow is 110 gpm? Determine the model number and impeller size
b. Assuming that the system is pumping water at the same temperature as the pump
curves were generated for, what is the required actual energy usage in horsepower (hp)
c. Assuming that the frictional pressure drop in the suction piping can be neglected, what
is the minimum number of feet below the surface of the liquid in this atmospheric tank
that you need to locate the pump inlet?
Capital Investment, continuedfeet