Rate of return

Q1 The HVAC engineer for a company that constructed one of the world’s tallest buildings

(Burj Dubai in the United Arab Emirates) requested that $500,000 be spent on software

and hardware to improve the efficiency of the environmental control systems. This is

expected to save $10,000 per year for “z” years in energy costs and $700,000 at the end of

“z” years in equipment refurbishment costs. “z” is the 5+ sum of last two digits of your roll

digit. Find the rate of return.(2021)

Q2

Q3 A consulting engineering firm is considering two models of SUVs for the company

principals. A GM model will have a first cost of Rs. 26000, an operating cost of Rs. 2000 in

year 1 & increasing by X % every year, and a salvage value of Rs. 12000 after 3 years. A Ford

model will have first cost of Rs. 29000, an operating cost of Rs. 1200 per year in year 1 &

increasing by X % every year, and a Rs. 15000 resale value after 5 years. At an interest rate of

15% per year, which model should the consulting firm buy? Conduct an annual worth analysis

(PIE section students solve the question using present worth method). X is the sum of last

two numbers of your roll identity.

Q4
Q5

A person is planning a new business. The initial outlay and cash flow pattern for the new business
are as listed below. The expected life of the business is five years. Find the rate of return for the
nerve business.

Q6 .A company is trying to diversify its business in a new product tine- The Life of

the project is l0 years with no salvage€ value at the end of its life- The initial

outlay of project is Rs. 20,00,000. The annual net profit is Rs' 3'50'000)'

Find the rate of re(urn for the new business-

Q7. The HYAC engineer for a company that constructed one of the world’s tallest

buildings (Burj Dubai in the United Arab Emirates) requested that $500,000 be spent

on software and hardware to improve the efficiency of the environmental control

systems. This is expected to save $10.000 per year for l0 years in energy costs and

$700.000 at the end of l0 years in equipment refurbishment costs. Find the rate of return .