Iet Homework

Christopher De Mory

IET 451

Assignment 01

1-1 A.) 3,000,000 Tons = 6,613,800,000 Pounds

6,613,800,000 x 0.05 = $330,690,000 in profit

64,000,000 Tons = 141,094,400,000 Pounds

141,094,400,000 x 0.03 = $4,232,832,000 in profit

330,690,000 + 4,232,832,000 = 4,563,522,000

The total profit for the U.S. corn industry in 2009 is $4,563,522,000

1-1B.) 4,563,522,000 x 1.20 = $5,476,226,400

5,476,226,400 - 4,563,522,000 = 912,704,400

The additional annual profit is $912,704,400

1-5A.) 13,000 / 24 = 541.67 -> 541.67 x 3.75 = $2,031.26

13,000 / 24 = 541.67 -> 541.67 x 3.18 = $1,722.51

2,031.26 – 1,722.51 = $308.75

If you used the E20 fuel, you would save $308.75 per year.

1-5B.) 541.67 x .80 = 433.34 -> 541.67 – 433.34 = 98.33 -> 1,500,000 x 98.33 = 147,495,000

147,495,000 gallons will be saved each year if 1,500,000 people use the E20 fuel.

1-8.) 1,500,000 x 1.80 = $2,700,000

In a lifetime, a college graduate would make $2,700,000.

1-9.) 15,000 / 3,000 = 5 -> 5 x 30 = $150

15,000 / 5,000 = 3 -> 3 x 30 = $90

150 – 90 = $60

If you got your oil and filter changed after 5,000 miles rather than 3,000, you would save $60 a year.

1-12.) I’ve got three options. (1) I can have the old stamping machine ($550,000) modified for $50,000 with “in house” technicians (who have never done modifications of this type before) but promise to have it done before the start date. (2) I can have Davidson Inc. modify the machine for $80,000 who have done this before and can have it done by the deadline (and offer to pay any late fees if it’s not). However, they claim that it is not environmentally safe. (3) I can purchase a new stamping machine for $650,000 from Davidson Inc. that has more environmental safeguards and higher capacity. Also, the old stamping machine could possibly be sold for scrap.

Using option 1, the technicians may not be able to modify it correctly because they’ve never done it before....