The total overhead expenses for a company are $10 M. The total labor cost for the whole company is $18 M. If a particular product has a direct labor of $3.6 M then the overhead expenses for this product is $6.4 M if overhead is based on direct labor costs.

Determine the first year depreciation of the building.

An equipment costing $60,000 is being evaluated for a production process at Don Jones Co. The expected benefits per year is $4,500 and estimated salvage value is $20,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 20 years.

An investment of $100,000 today, will pay 10 annual payments of $15,000 each. Compute the rate of return on this investment to the second decimal place.

Daniel borrowed $20,000 with a promise to repay the loan in 6 years with a uniform monthly payment and a single payment of $2,000 at the end of six years at a nominal interest rate of 12% per year.       Reference: Case Study 4.17 What is the amount of each payment?

Life cycle costs (LCC) are costs incurred on a product from cradle to grave, (i.e) concept generation to retirement.

The university your daughter wants to go in the fall of 2107 requested that you pay the tuition for all 4 years upfront when she starts school. The current tuition bill is $50,000. You expect the inflation rate to average 2% per year, and that the university pays a 4 % interest per year for the four year period. What is the present worth of your payment?

The office of management and Budget (OMB) stipulates that a 7% interest rate be used in economic analysis of federal projects.

Sue borrowed $1,000 from Tom and paid him back very generously with a $2,000 check when she won a lottery after 8 years. The compound interest rate on this loan is 16.67%.

Land is a depreciable asset as land appreciates overtime.