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What is the standard equation for calculating the future worth (F) when given the annual rate of return (I) and the present rate (P)?

(A) $latex F=P(1+i)^{n-1}$

(B) $latex F=P(1+i)^n$

(C) $latex F=P(1-i)^n$

(D) $latex F=P(1+n)^I$

A company can manufacture a product using hand tools. Tools will cost $1,000, and the manufacturing cost per unit will be $1.50. As an alternative, an automated system will cost $15,000 with a manufacturing cost per unit of $0.50. With an anticipated annual volume of 5,000 units and neglecting interest, the break-even point (years) is most nearly:

(A) 2.0 (B) 2.8 (C) 3.6 (D) 15.0

Correct Answer: B

Which of the following statements is FALSE when concerning the hot working of metal?

(A) Produce a fine grained product (B) Removes strain hardening (C) Combines of annealing and cold working (D) Decreases the density of the metal

Correct Answer: D