Vision Technologies, Inc. is a small company that uses ultra-wideband technology to
develop devices that can detect objects (including people) inside buildings, behind walls,
or below ground. The company expects to spend $100,000 per year for labor and $125,000
per year for supplies before a product can be marketed. If the company wants to know the
total equivalent future amount of the company's expenses at the end of 3 years at 15% per
year interest, identify the engineering economy symbols involved and the values for the
ones that are given, and construct a cash flow diagram.
Sensotech, Inc., a maker of microelectromechanical systems, believes it can reduce product
recalls by 10% if it purchases new software for detecting faulty parts. The cost of the new
software is $225,000. Identify the symbols involved and the values for the symbols that are
given in determining how much the company would have to save each year to recover its
investment in 4 years at a minimum attractive rate of return of 15% per year. Please identify
the engineering economy symbols involved and construct a cash flow diagram.
. Identify all engineering economy symbols involved and construct a cash flow diagram for
the following: $10,000 inflow at time zero, $3000 per year outflow in years 1 through 3 at
an interest rate of 10% per year, and an unknown future amount in year 3. Calculate the
equivalent future amount of cash at end of year 3.
F=$3,380
