Engineering Economy 15th Edition

Sullivan Test Bank

Go to download the full and correct content document:
https://testbankfan.com/product/engineering-economy-15th-edition-sullivan-test-bank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...

Engineering Economy 15th Edition Sullivan Solutions

Manual

https://testbankfan.com/product/engineering-economy-15th-edition-
sullivan-solutions-manual/

Engineering Economy 16th Edition Sullivan Test Bank

https://testbankfan.com/product/engineering-economy-16th-edition-
sullivan-test-bank/

Engineering Economy 16th Edition Sullivan Solutions

Manual

https://testbankfan.com/product/engineering-economy-16th-edition-
sullivan-solutions-manual/

Engineering Economy 17th Edition Sullivan Solutions

Manual

https://testbankfan.com/product/engineering-economy-17th-edition-
sullivan-solutions-manual/
Economy Today 15th Edition Schiller Test Bank

https://testbankfan.com/product/economy-today-15th-edition-
schiller-test-bank/

Engineering Economy 8th Edition Blank Solutions Manual

https://testbankfan.com/product/engineering-economy-8th-edition-
blank-solutions-manual/

Engineering Economy 7th Edition Blank Solutions Manual

https://testbankfan.com/product/engineering-economy-7th-edition-
blank-solutions-manual/

Basics of Engineering Economy 2nd Edition Blank

Solutions Manual

https://testbankfan.com/product/basics-of-engineering-
economy-2nd-edition-blank-solutions-manual/

Economy Today 14th Edition Schiller Test Bank

https://testbankfan.com/product/economy-today-14th-edition-
schiller-test-bank/
Exam

Name___________________________________

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Answer the question.

1) Consider the three mutually exclusive alternatives below. Determine which alternative is 1)
preferable at an interest rate of 9% per year.

Alternative M N P
Capital investment $400,000 $4000 $150,000
Annual expense $189,000 $94,500 $134,000
Annual revenue $309,000 $194,500 $234,000
Salvage value $65,000 - $130,000
Life, years 24 12

Answer: AW(M) = $79,645.00

AW(N) = $99,640.00
AW(P) = $85,506.00

The alternative with the largest positive annual worth should be selected.
Explanation: AW(M) = -400,000(A/P, 9%, 24) - 189,000 + 309,000 + 65,000(A/F, 9%, 24)
= -400,000(0.103) + 120,000 + 65,000(0.013)
= 79,645.00

AW(N) = -4000 x 0.09 - 94,500 + 194,500

= 99,640.00

AW(P) = -150,000(A/P, 9%, 12) - 134,000 + 234,000 + 130,000(A/F, 9%, 12)

= -150,000(0.1397) + 100,000 + 130,000(0.0497)
= 85,506.00

Select the alternative with the largest positive annual worth.

1
2) Two delivery methods have been proposed for a standard delivery method for new bridge 2)
constructions in Oregon to overcome traditional design-bid-build models that do not
adequately account for site conditions and constructability, and often lead to additional
expenses. One alternative must be selected to represent the delivery method specified in
the RFP. Based on data from recent bridge construction projects of comparable size, we
can estimate the savings from reduced redesign costs, risk management costs, and
overhead costs during the life of the construction contract over the traditional delivery
model. The estimated costs of a 18-month contract are the following:

Alternative Construction manager Design-Build

/General contractor
Preconstruction and design costs $80,000 $90,000
Monthly savings $4000 $6500
Project life, months 18 18

Which alternative should be selected based on the present worth method? Use a MARR of
4%, compounded monthly. Assume other benefits and costs are negligible.
Answer: PW(CM/GC) = -$10,208.40
PW(DB) = $23,411.35

Therefore, the Design-Build method should be selected.

Explanation: Effective interest rate = 0.04/12 = 0.0033 or 0.33%

PW(CM/GC) = -80,000 + 4000(P/A, 0.33%, 18)

= -80,000 + 4000(17.4479)
= -10,208.40

PW(DB) = -90,000 + 6500(P/A, 0.33%, 18)

= -90,000 + 6500(17.4479)
= 23,411.35

PW(CM/GC) < PW(DB); therefore, the Design-Build method should be selected.

2
3) A leading cancer research institution received a gift for cancer research. The institution is 3)
deciding whether to use the gift to create an endowment fund or to build a new research
facility. If the gift is used to establish an endowment fund, the fund would award research
funding and scholarships totaling $9.75 million per year with the first awards to be granted
at the end of next year and continue each year perpetually. Alternatively, if the gift is used
to building an integrative cancer research facility, the construction of the facility will cost
$16.5 million and the building is expected to be renovated every 10 years at a cost of $3.3
million. The annual maintenance costs are expected to be $1 million. If the facility is
expected to last forever, which alternative should be selected at an interest rate of 2% per
year?
Answer: CW (Fund) = -$487,500,000.00
CW (Building) = -$81,564,500.00

Select the alternative with the least negative capitalized worth.

Explanation: CW (Fund) = -9.750000000 × 106/0.02 = -487,500,000.00
CW (Building) = -16,500,000 - 1,000,000/0.02 - [3,300,000(A/F, 2%, 10]/0.02
= -16,500,000 - 50,000,000 - 3,300,000(0.0913)/0.02
= -81,564,500.00

Select the alternative with the least negative capitalized worth.

4) A major defense supplier is planning for the manufacturing of its Desert Hawk VII 4)
Unmanned Aerial Systems, a hand-launched air vehicle that provides intelligence,
reconnaissance, and surveillance capabilities. Three manufacturing facilities are under
consideration. Each site provides the same manufacturing capability but has different
costs to manufacture and transport the system to the customers. The estimated costs are
provided in the table below.

Alternative Texas Plant Utah Plant Minnesota Plant

Set up costs $720,000 $770,000 $755,000
Annual operating costs $27,500 $22,500 $24,500
Salvage Value, at end of year8 $420,000 $430,000 $445,000
Transportation costs per unit $2000 $2250 $2300
Useful lives, years 8 9 10

If the company has to deliver 300 units per year for 8 years, which facility should be
selected based on the present worth method? Assume the company uses a MARR of 5%
and a study period of 8 years.
Answer: PW(TX) = -$4,491,402.00
PW(UT) = -$4,987,058.00
PW(MN) = -$5,071,780.40

Therefore, the Texas plant should be selected.

3
 Explanation: Compare alternatives over a study period of 8 years.

PW(TX) = -720,000 - 27,500(P/A, 5%, 8) - (2000)(300)(P/A, 5%, 8) + 420,000(P/F,

5%, 8)
= -720,000 - (27,500 + 600,000)(6.4632) + 420,000(0.6768)
= -4,491,402.00

PW(UT) = -770,000 - 22,500(P/A, 5%, 8) - (2250)(300)(P/A, 5%, 8) + 430,000(P/F,

5%, 8)
= -770,000 - (22,500 + 675,000)(6.4632) + 430,000(0.6768)
= -4,987,058.00

PW(MN) = -755,000 - 24,500(P/A, 5%, 8) - (2300)(300)(P/A, 5%, 8) +

445,000(P/F, 5%, 8)
= -755,000 - (24,500 + 690,000)(6.4632) + 445,000(0.6768)
= -5,071,780.40

PW(TX) > PW (UT) > PW (MN); therefore, the Texas plant should be selected.

5) A manufacturing firm is considering two models of lathes. Model A will have an initial 5)
cost of $29,000, an operating cost of $2750, and a salvage value of $6500 after 6 years.
Model B will have an initial cost of $36,500, an operating cost of $2200, and a $7750 resale
value after 12 years. At an interest rate of 10% per year, which model should the
consulting firm buy?
Answer: AW(A) = -$8566.00
AW(B) = -$7195.50

The alternative with the least negative annual worth should be selected.
Explanation: Use the annual worth method.

AW(A) = -29,000(A/P, 10%, 6) - 2750 + 6500(A/F, 10%, 6)

= -29,000(0.2296) - 2750 + 6500(0.1296)
= -8566.00

AW(B) = -36,500(A/P, 10%, 12) - 2200 + 7750(A/F, 10%, 12)

= -36,500(0.1468)- 2200 + 7750(0.0468)
= -7195.50

Select the alternative with the least negative annual worth.

4
6) Two structural designs for a large public monument in Indonesia are under evaluation. 6)
Use the repeatability assumption and the CW method to determine which design should
be selected if the service period of the monument is indefinite and the interest rate is 2%
per year.

Alternative A B
Initial costs $310,000 $325,000
Annual maintenance costs $23,000 $24,500
Usual life, years 8 11

Answer: CW (A) = -$57,715.00

CW (B) = -$2,885,750.00

Design B should be selected.

Explanation: AW(A) = -310,000(A/P, 2%, 8) - 23,000
= -310,000(0.1365) - 23,000
= -65,315.00

CW (A) = AW/0.02
= (-65,315.00)/(0.02)
= -3,265,750.00

AW(B) = -325,000(A/P, 2%, 11) - 24,500

= -325,000(0.1022) - 24,500
= -57,715.00

CW (B) = AW/0.02
= (-57,715.00)/(0.02)
= -2,885,750.00

CW(B) > CW(A); therefore, the design B should be selected.

5
 7) A manufacturing company is deciding between three maintenance plans for a new waste 7)
management system. Plan A needs a single prepayment of $59,000 at the beginning of the
year and the contract needs to be renewed every 3 years. Plan B is a two-year contract and
requires a payment of $19,470 at the end of year 1 and another payment of $20,060 at the
end of year 2. Plan C provides a three-year services with two payments of $29,500 made at
the end of years 1 and 3. Which maintenance plan should be selected based on the present
worth method? Assume the company uses a MARR of 11% and a study period of 6 years.
Answer: PW(A) = -$102,140.80
PW(B) = -$83,550.73
PW(C) = -$83,349.30

Therefore, plan C should be selected.

Explanation: Compare alternatives over a study period of 6 years.

PW(A) = -59,000 - 59,000(P/F, 11%, 3)

= -59,000 - 59,000(0.7312)
= -102,140.80

PW (B) = -19,470(P/F, 11%, 1) - 20,060(P/F, 11%, 2) - 19,470(P/F, 11%, 3) -

20,060(P/F, 11%, 4)
- 19,470(P/F, 11%, 5) - 20,060(P/F, 11%, 6)
= -19,470(0.9009) - 20,060(0.8116) - 19,470(0.7312) - 20,060(0.6587)
- 19,470(0.5935) - 20,060(0.5346)
= -83,550.73

PW(C) = -29,500(P/F, 11%, 1) - 29,500(P/F, 11%, 3)- 29,500(P/F, 11%, 4) -

29,500(P/F, 11%, 6)
= -29,500(0.9009) - 29,500(0.7312) - 29,500(0.6587) - 29,500(0.5346)
= -83,349.30

PW(A) < PW (B) < PW (C); therefore, plan C should be selected.

8) A thermoplastic film manufacturer is trying to decide between four types of 8)

thermoforming molding processes to be added to its molding operation. The estimated
costs and revenue are shown below. Compare them on the basis of rate of return and
determine which process should be selected if the company's MARR is 6% per year.

Alternative Vacuum Pressure Drape Free

forming forming forming blowing
Initial costs $31,000 $51,000 $43,000 $45,000
Annual expenses $3300 $3000 $3200 $3800
Annual revenue $7300 $11,000 $9700 $10,800
Salvage value $3100 $5100 $4300 $4500
Life, years 8 8 8 8
IRR (%) 2.66 6.87 6.03 6.68

Answer: IRR (V) = 2.66% < 6%; Discard vacuum forming.

Incremental IRR (F-D) = 19.43% > 6%; Discard drape forming.
Incremental IRR (Z-M) = 8.30% > 6%; Discard free blowing.

Pressure forming should be selected.

6
Explanation: Rank V, D, F and P

IRR (V) = 2.66% < 6%; therefore, vacuum forming is discarded.

PW (F-D) = 0 = -45,000 + 43,000 + (10,800 - 3800 - 9700 + 3200)(P/A, 6%, 8) + (

4500 - 4300)
(P/F, 6%, 8)
= -2,000 + 500 (P/A, i%, 8) + 200 (P/F, i%, 8)

Solve for i by interpolation and incremental IRR = 19.43% > 6%; therefore,
discard drape forming.

Or PW (F-D) = -2,000 + 500 (P/A, 6%, 8) + 200 (P/F, 6%, 8)

= -2,000 + 500(6.2098) + 200(P/F, 6%, 8)
= -2,000 + 500(6.2098) + 200(0.6274)
= 1230.38 > 0

PW(F-D, 6%) > 0; therefore, discard drape forming.

PW (P-F) = 0 = -51,000 + 45,000 + (11,000 - 3000 - 10,800 + 3800)(P/A, 6%, 8) + (

5100- 4500)
(P/F, 6%, 8)
= -6,000 + 1,000 (P/A, i%, 8) + 600 (P/F, i%, 8)

Solve for i by interpolation and incremental IRR = 8.30% > 6%; therefore,
discard free blowing.

Or PW (P-F) = -6,000 + 1,000 (P/A, 6%, 8) + 600 (P/F, 6%, 8)

= -6,000 + 1,000(6.2098) + 600(P/F, 6%, 8)
= -6,000 + 1,000(6.2098) + 600(0.6274)
= 586.24 > 0

PW(P-F, 6%) > 0; therefore, discard free blowing.

Select pressure forming.

7
9) Consider the three mutually exclusive alternatives below. At the end of their useful lives, 9)
alternatives X and Z will be replaced with identical replacements so that a 10-year service
requirement is met. If the MARR is 3% per year, which alternative (if any) should be
chosen?

Alternative X Y Z
Capital Investment $300,000 $425,000 $500,000
Annual savings $68,750 $108,750 $188,750
Salvage value $90,000 $125,000 $140,000
Life, years 10 20 5

Answer: AW(X) = $41,438.00

AW(Y) = $84,840.00
AW(Z) = $105,926.00

Select the alternative with the largest positive annual worth.

Explanation: AW(X) = -300,000(A/P, 3%, 10) + 68,750 + 90,000(A/F, 3%, 10)
= -300,000(0.1172) + 68,750 + 90,000(0.0872)
= 41,438.00

AW(Y) = -425,000(A/P, 3%, 20) + 108,750 + 125,000(A/F, 3%, 20)

= -425,000(0.0672) + 108,750 + 125,000(0.0372)
= 84,840.00

AW(Z) = -500,000(A/P, 3%, 5) + 188,750 + 140,000(A/F, 3%, 5)

= -500,000(0.2184) + 188,750 + 140,000(0.1884)
= 105,926.00

Select the alternative with the largest positive annual worth.

8
10) A slip sheet manufacturer is considering two machines. An engineer is asked to perform 10)
analyses to select the best machine. She prepares the following information for the
evaluation. All machines have a useful life of 5 years. If the company's MARR is 4% per
year, which machine should be selected.

Machine X Y
First costs $52,000 $37,000
Annual expenses $5750 $8050
Annual revenue $15,250 $15,750
Salvage value $23,400 $5550
IRR (%) 9.10 5.62

Answer: Incremental IRR (X-Y) = 14.83% > 4%; discard machine Y

Machine X should be selected.
Explanation: Rank Y and X.

PW(X-Y) = 0 = -52,000 + 37,000 + (-5750 + 8050 + 15,250 - 15,750)(P/A, i%, 5)

+ (23,400 - 5550)(P/F, i%, 5)
= -15,000 + 1,800 (P/A, i%, 5) + (17,850) (P/F, i%, 5)

Solve for i by interpolation and incremental IRR = 14.83% > 4%; therefore,
discard machine Y.

Or, PW(X-Y, 4%) = -15,000 + 1,800 (P/A, 4%, 5) + (17,850)(P/F, 4%, 5)

= -15,000 + 1,800 (4.4518) + (17,850)(0.8219)
= 7684.16 > 0

Select machine X.

9
11) A large textile company is trying to decide among three alternatives of sludge dewatering 11)
processes. The costs associated with these alternatives are shown below. Alternative Y
will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z
would be replaced with another alternative Z having the same installed and operating
costs. If the MARR is 14% per year, which alternative should be chosen?

Alternative X Y Z
Installed costs $68,500 $48,500 $33,500
Annual operating costs $6000 $4000 $5000
Overhaul cost in year 2 - $9700 -
Salvage value $33,250 $28,250 $15,750
Useful life, years 8 4 2

Answer: AW (X) = -$18,254.90

AW(Y) = -$17,466.50
AW (Z) = -$17,984.57

Select the alternative with the least negative annual worth.

Explanation: AW(X) = -68,500(A/P, 14%, 8) - 6000 + 33,250(A/F, 14%, 8)
= -68,500(0.2156) - 6000 + 33,250(0.0756)
= -18,254.90

AW(Y) = -48,500(A/P, 14%, 4) - 4000 - 9700(P/F, 14%, 2)(A/P, 14%, 4) +

28,250(A/F,14%, 4)
= -48,500(0.3432) - 4000 - 9700(0.7695)(0.3432) + 28,250(0.2032)
= -17,466.50

AW(Z) = -33,500(A/P, 14%, 2) - 5000 + 15,750(A/F, 14%, 2)

= -33,500(0.6073) -5000 + 15,750(0.4673)
= -17,984.57

Select the alternative with the least negative annual worth.

10
12) HealthRx, a major manufacturer of non-invasive breast and cervical cancer detection 12)
products is planning to expand its market in Asia. Three single-patient-use disposable
devices based on its proprietary technology to identify cancers and precancers painlessly
and noninvasively by scanning the cervix with light are being considered. The costs to
manufacture these devices are the following:

Alternative Soft Touch Light Touch Gentle Touch

Initial costs $500,000 $520,000 $535,000
Annual operating costs $15,000 $14,500 $14,000
Salvage Value $70,000 $80,000 $85,000
Sell Price per unit $3500 $3600 $3650

If the company sells 1000 units per year, which device should be selected based on the
present worth method? Assume the company uses a MARR of 11% and wants to recover
its investment in 7 years.
Answer: PW(ST) = $15,955,736.00
PW(LT) = $16,414,129.10
PW(GT) = $16,639,503.70

Therefore, Gentle Touch should be selected.

Explanation: PW(ST) = -500,000 - 15,000(P/A, 11%, 7) + (3500)(1000)(P/A, 11%, 7) +
70,000(P/F, 11%, 7)
= -500,000 + (-15,000 + 3,500,000)(4.7122) + 70,000(0.4817)
= 15,955,736.00

PW(LT) = -520,000 - 14,500(P/A, 11%, 7) + (3600)(1000)(P/A, 11%, 7) +

80,000(P/F, 11%, 7)
= -520,000 + (-14,500 + 3,600,000)(4.7122) + 80,000(0.4817)
= 16,414,129.10

PW(GT) = -535,000 - 14,000(P/A, 11%, 7) + (3650)(1000)(P/A, 11%, 7) +

85,000(P/F, 11%, 7)
= -535,000 + (-14,000 + 3,650,000)(4.7122) + 85,000(0.4817)
= 16,639,503.70

PW(ST) < PW (LT) < PW (GT); therefore, Gentle Touch should be selected.

11
13) A manufacturer of automated optical inspection (AOI) devices is deciding on a project to 13)
increase the productivity of the manufacturing processes. The estimated costs for the two
feasible alternatives being compared are shown below. Use the ERR method to determine
which alternative should be selected if the analysis period is 8 years and the reinvestment
rate equals the company's MARR of 4% per year.

Alternative M N
Initial costs $30,000 $45,000
Net annual cash flow $4,500 $7,000
Life, years 8 8

Answer: ERR (M) = 4.11% > 4%

ERR (N-M) = 5.55% > 4%

Select project N.
Explanation: Rank M and N.

Find the ERR of project M.

N N
Ek (P/F, %, k)(F/P,i %, N) = Rk (F/P, %, N - k)
k=0 k=0
30,000(F/P, i %, 8) = 4,500(F/A, 4%, 8)
(1+ i )8 = 4,500(9.2142)/30,000
(1+ i ) = (1.38)1/8
i = 0.0411

Using a MARR of 4%, project M is justified.

Next, find the incremental ERR of N-M.

15000(F/P, i %, 8) = 2,500(F/A, 4%, 8)
(1+ i )8 = 2,500(9.2142)/ 15,000
(1+ i ) = (1.54)1/8
i = 0.0555
i > 4%; therefore, project N is justified.

Select Project N.

12
14) Compare the alternatives shown below on the basis of their future worth, using an interest 14)
rate of 14% per year, compounded quarterly. Which alternative should be selected?

Alternative A B
Initial costs $421,000 $1,171,000
Quarterly revenues $46,000 $71,000
Quarterly expenses $17,000 $18,500
Disposal costs $6750 $6250
Life, years 12 24

Answer: FW(A) = $8,012,971.00

FW(B) = $7,436,476.25

The alternative with the largest positive future worth should be selected.
Explanation: Effective interest rate = 0.14/4 = 0.0350 or 3.5% per quarter

FW(A) = -421,000(F/P, 3.5%, 96) + [(46,000) - (17,000)](F/A, 3.5%, 96) - [

421,000 + 6750](F/P, 3.5%, 48) - 6750
= -421,000(27.1815) + 29,000(748.0431) - (427,750)(5.2136) - 6750
= 8,012,971.00

FW(B) = -1,171,000(F/P, 3.5%, 96) + [(71,000)-(18,500)](F/A, 3.5%, 96) - 6250

= -1,171,000(27.1815) + (52,500)(748.0431) - 6250
= 7,436,476.25

Select the alternative with the largest positive future worth.

15) In response to the new federal regulation to provide the public with safe and wholesome 15)
seafood, an Alaska seafood processor is considering two new sanitation control systems to
help monitor its seafood processing operations. System X has a useful life of 20 years and
requires an installed cost of $33,000 and annual maintenance cost of $7000. Some of the
equipment can be sold at $2200 at the end its useful life. System Y has a useful life of 10
years. The system will cost $16,500 to install and will involve an annual maintenance fee
of $8500. At the end of year 10, system Y can be upgraded for $23,100 to have the same
capability and will last another 10 years. However, the upgraded system will require an
annual maintenance fee of $8700. The salvage value for the system Y is negligible. Which
system should be selected based on the present worth method? Assume the company uses
a MARR of 5% per year.
Answer: PW(A) = -$119,406.22
PW(B) = -$137,556.60

Therefore, system X should be selected.

Explanation: PW(X) = -33,000 - 7000(P/A, 5%, 20) + 2200(P/F, 5%, 20)
= -33,000 - 7000(12.4622) + 2200(0.3769)
= -119,406.22

PW (Y) = -16,500 - 8500(P/A, 5%, 10) - 23,100(P/F, 5%, 10) - 8700(P/A, 5%,
10)(P/F, 5%, 10)
= -16,500 - 8500(7.7217) - 23,100(0.6139) - 8700(7.7217)(0.6139)
= -137,556.60

PW(X) > PW(Y); therefore, system X should be selected.

13
16) Cassandra sets up a savings plan for her retirement. She plans to make a quarterly 16)
payment of $3250 into a savings account that earns 11% per year, compounded quarterly.
After 3 years, she will have an option to continue making $3250 quarterly payments or to
switch to an annual savings plan that earns higher interest of 11.25% per year and requires
annual payments of $13,000. If she plans to retire 13 years from now, which option will
offer more money in the savings plan at that time?
Answer: FW(quarterly payment) = $231,621.33

FW(annual payment) = $220,021.10

Continuing to make quarterly payment offers more money at the time of retirement.
Explanation: Effective interest rate = 0.11/4 = 0.0275 or 2.75% per quarter

FW(quarterly payment) = 3250(F/A, 2.75%, 40)

= 3250(71.2681)
= 231,621.33

FW (annual payment) = 13,000(F/A, 11.25%, 10)

= 13,000(16.9247)
= 220,021.10

FW (quarterly payment) > FW(annual payment); therefore, continuing to make

quarterly payments offers more money at the time of retirement.

14
17) Two grandparents are considering purchasing a baby bond for their first grandson. They 17)
are deciding between two bonds with the same face value of $42,000. Both bonds are
offered at the same price of $37,000. Bond A has interest of 2.5% per year, payable
quarterly, and matures in 6 years. Bond B, issued 2 years ago, has interest of 2.75% per
year, payable semiannually, and a 8-years maturity date. If the current market rate is 3%
per year, compounded quarterly, which bond should be purchased?
Answer: PW(A) = $40,849.49
PW(B) = $41,381.95

Bond B should be purchased.

Explanation: From VN = C(P/F, i%, N) + rZ(P/A, i%, N)

Bond A i = 0.03/4= 0.01 or 0.75% per quarter

r = (2.5%)/4 = (0.625%)
N = 6*4 periods remaining in the life of the bond.

PW(A) = 42,000(P/F, 0.75%, 24) + 262.5(P/A, 0.75%, 24)

= 42,000(0.8358) + 262.5(21.8891)
= 40,849.49

Bond B i = (1 + r/M)M - 1 = (1 + 0.015/2)2 -1

= 0.0001 or 1.51% per semiannually
r = (2.75%)/2 = (1.375%)
N = 6*2 periods remaining in the life of the bond.

PW(B) = 42,000(P/F, 1.51%, 12) + 577.50(P/A, 1.51%, 12)

= 42,000(0.8354) + 577.50(10.9007)
= 41,381.95

PW(B) >PW(A) and PW(B) > 37,000; therefore, bond B should be purchased.

18) Two flash vaporizer machines are considered for the upgrade of biodiesel production. An 18)
engineer is asked to perform analyses to select the best machine. He prepares the
following information for the evaluation. Machine X has a useful life of 8 years and
machine Y has a useful life of 11 years. Compute the market value of Machine Y at the end
of year 8 and determine which machine should be selected based on annual worth method
using an interest rate of 13% per year and a study period of 8 years.

Machine X Y
First costs $29,000 $32,000
Net annual revenue $10,500 $12,000
Market value at the end of the
useful life $6900 $6000
Life, years 8 11

Answer: MV at the end of year 8 = $16,792.91

AW(X) = $4997.36
AW(Y) = $6647.76

Select machine Y.

15
Explanation: Compute the PW at the end of year 8 of the remaining CR amounts of Y.

PW (CR) = [32,000(A/P, 13%, 11) - 6000(A/F, 13%, 11)](P/A, 13%, 3)

= [32,000(0.1758) - 6000(0.0458)](2.3612)
= 12,634.31

Compute the PW at the end of year 8 of the original MV at the end of useful
life.

PW (MV) = 6000(P/F, 13%, 3) = 6000(0.6931)

= 4158.60

Thus, MV at the end of year 8 = PW(CR)+ PW(MV)

= [(5625.60) - (6000*0.0458)] * 2.3612 + (4158.60)
= 16,792.91

AW (X) = -29,000(A/P, 13%, 8) + 10,500 + 6900(A/F, 13%, 8)

= -29,000(0.2084) + 10,500 + 6900(0.0784)
= 4997.36

AW(Y) = -32,000(A/P, 13%, 8) + 12,000 + 16,792.91(A/F, 13%, 8)

= -32,000(0.2084) + 12,000 + 16,792.91(0.0784)
= 6647.76

AW(Y) > AW(X); therefore, select machine Y.

16
19) A manufacturer of Neighborhood Electric Vehicles (NEVs) plans to upgrade its parts 19)
inventory tracking system. Two alternatives are under consideration. The estimated costs
of each alternative are provided below. At the end of 9 years, alternative E will need to be
upgraded with additional costs of $19,300 over the initial cost of the system. The upgrade
will reduce the annual maintenance costs by $2000 over the next 9 years. Which
alternative should be selected on the basis of their future worth at an interest rate of 17%
per year and a study period of 18 years? Assume negligible salvage value.

Alternative E F
First costs $386,000 $401,000
Annual maintenance
costs $60,000 $58,500
Life, years 9 18

Answer: FW(E) = -$13,748,192.81

FW(F) = -$12,232,706.60

The alternative with the least negative future worth should be selected.
Explanation: FW(E) = -386,000(F/P, 17%, 18) - 60,000(F/A, 17%, 9)(F/P, 17%, 9) - 405,300(F/P,
17%, 9) - 58,000(F/A, 17%, 9)
= -386,000(16.879) - 60,000(18.2847)(4.1084) - 405,300(4.1084) - 58,000(
18.2847)
= -13,748,192.81

FW(F) = -401,000(F/P, 17%, 18) - 58,500(F/A, 17%, 18)

= -401,000(16.879) - 58,500(93.4056)
= -12,232,706.60

Select the alternative with the least negative future worth.

17
20) Two advanced thermal insulating and anti-condensation protection alternatives have been 20)
proposed for new Antarctica marine vessels subject to the harsh marine environment. One
alternative must be selected. Estimated savings from reduced total installation and
maintenance costs over conventional insulation are the following:

Alternative Delta-T Alpha-B

Installed cost $13,000 $15,000
Annual savings $4750 $6250
Life, years 8 8

Which alternative should be recommended based on the present worth method? Use a
MARR of 18 percent and a study period of 8 years. Assume negligible salvage values.
Answer: PW(Delta-T) = $6370.50
PW(Alpha-B) = $10,487.50

Therefore Alpha-B should be recommended.

Explanation: PW(Delta-T) = -13,000 + 4750(P/A, 18%, 8)
= -13,000 + 4750(4.078)
= 6370.50

PW(Alpha-B) = -15,000 + 6250(P/A, 18%, 8)

= -15,000 + 6250(4.078)
= 10,487.50

PW(Alpha-B) > PW(Delta-T); therefore, Alpha-B should be recommended.

21) A textile company is considering opening a production and shipping facility in Dallas to 21)
keep up with demand for its pillows. The 105,000-square-foot facility, if purchased, will
require an initial investment of $255,000 and an annual operating cost of $68,500. It will
have a $80,000 salvage value after 8 years. Alternatively, the facility can be leased with
annual rent of $51,000 in year 1 and increasing by $1000 per year. If the company's
minimum attractive rate of return is 6% per year, compounded quarterly, should the
facility be purchased or leased?
Answer: AW (Purchase) = -$101,744.50
AW (Lease) = -$54,188.40

Select the alternative with the least negative annual worth.

Explanation: Effective interest rate = (1 + r/M)M - 1 = (1+ 0.06/4)4 -1
= 0.0614 or 6.14% per year

AW (Purchase) = -255,000(A/P, 6.14%, 8) - 68,500 + 80,000(A/F, 6.14%, 8)

= -255,000(0.1619) - 68,500 + 80,000(0.1005)
= -101,744.50

AW (Lease) = -51,000 - 1000(A/G, 6.14%, 8)

= -51,000 - 1000(3.1884)
= -54,188.40

Select the alternative with the least negative annual worth.

18
22) An insulated shipping container supplier is considering expanding its product line. Three 22)
materials with different insulation properties are under consideration. The following
information is prepared for the economic evaluation of the best material. If the company's
MARR is 4% per year and the study period is 5 years, use an AW-based incremental rate
of return equation to determine which alternative is preferred. Assume the salvage value is
negligible.

Material Q R S
First costs $46,000 $58,000 $61,000
Net annual revenue $10,000 in year 1, $11,900, $13,450
increasing by increasing by
$100 per year $450 per year
thereafter thereafter
IRR (%) 5.93 5.15 5.14
Incremental IRR (%)
Q -
R 2.50% -
S 2.79% 5.09% -

Answer: AW (R-Q) = 0 = -12,000(A/P, i%, 5) + 1900 + 350 (A/G, i%, 5)

IRR (R-Q) = 2.50% < 4%; therefore, discard material R.

AW(S-Q) = 0 = -15,000(A/P, i%, 5) + 3450 - 100 (A/G, i%, 5)

IRR (S-Q) = 2.79% < 4%; therefore, discard material S.

Select material Q.
Explanation: Rank Q, R and S

AW (R-Q) = 0 = [-58,000 - (-46,000)](A/P, i%, 5) + 1900 + (450-100) (A/G, i%,

5)
= -12,000(A/P, i%, 5) + 1900 + 350 (A/G, i%, 5)
IRR (R-Q) = 2.50% < 4%; therefore, discard material R.

AW(S-Q) = 0 = [-61,000 - (-46,000)](A/P, i%, 5) + 3450 - 100 (A/G, i%, 5) = 0

= -15,000(A/P, i%, 5) + 3450 - 100 (A/G, i%, 5)
IRR (S-Q) = 2.79% < 4%; therefore, discard material S.

Select material Q.

19
23) A dentist is deciding between two X-ray machines for his new office. Estimated costs for 23)
each machine are the following:

Machine A B
Installed cost $36,000 $38,000
Annual maintenance cost $1250 $950
Market value at year 6 $5750 $6250
Life, years 6 6

Which machine should be recommended based on the annual worth method? Use a
MARR of 15% and a study period of 6 years.
Answer: AW(A) = -$10,104.55
AW(B) = -$10,275.85

Therefore machine A should be recommended.

Explanation: AW(A) = -36,000(A/P, 15%, 6) - 1250 + 5750(A/F, 15%, 6)
= -36,000(0.2642) - 1250 + 5750(0.1142)
= -10,104.55

AW(B) = -38,000(A/P, 15%, 6) - 950 + 6250(A/F, 15%, 6)

= -38,000(0.2642) - 950 + 6250(0.1142)
= -10,275.85

AW(A) > AW(B) ;therefore, machine A should be recommended.

24) A medical mobility equipment manufacturer is considering two alternatives as part of an 24)
upgrade of its power wheelchairs assembly. Alternative A has an installed cost of $10,000,
net annual revenue of $6000, and a useful life of 3 years. Alternative B has an installed cost
of $20,000, net annual revenue of $6350 and a useful life of 6 years. At the end of year 3,
alternative A would be replaced with another alternative A having the same installed cost
and net annual revenues. If the MARR is 8% per year, which alternative (if any) should be
selected based on the present worth method? Assume negligible salvage value.
Answer: PW(A) = $9799.40
PW(B) = $9355.42

Therefore, alternative A should be selected.

Explanation: PW(A) = -10,000 - 10,000(P/F, 8%, 3) + 6000(P/A, 8%, 6)
= -10,000 - 10,000(0.7938) + 6000(4.6229)
= 9799.40

PW (B) = -20,000 + 6350 (P/A, 8%, 6)

= -20,000 + 6350(4.6229)
= 9355.42

PW(A) > 0 and PW(A) > PW (B) ; therefore, alternative A should be selected.

20
Another random document with
no related content on Scribd:
cheap things, by which one understands showy, trashy, ill-made,
spurious articles, bearing certain apparent resemblances to better
things. All really sensible people are quite superior to that sort of
cheapness. But those fortunate accidents which put within the power
of a man things really good and valuable for half or a third of their
value, what mortal virtue and resolution can withstand?

Warning for Mothers who throw away the key of their children’s
mothers. hearts in childhood sometimes have a sad retribution.
As the children never were considered when they were
little and helpless, so they do not consider when they are strong and
powerful.

Careful I think the best things on all subjects in this world of

observation. ours are said, not by the practical workers, but by the
careful observers.

THE CHIMNEY CORNER.

Looking Friend Theophilus was born on the shady side of

through blue Nature, and endowed by his patron saint with every
glasses. grace and gift which can make a human creature
worthy and available, except the gift of seeing the bright side of
things. His bead-roll of Christian virtues includes all the graces of the
spirit except hope; and so, if one wants to know exactly the flaw, the
defect, the doubtful side, and to take into account all the untoward
possibilities of any person, place, or thing, he had best apply to
friend Theophilus. He can tell you just where and how the best-laid
scheme is likely to fail, just the screw that will fall loose in the
smoothest working machinery, just the flaw in the most perfect
character, just the defect in the best written book, just the variety of
thorn that must accompany each particular species of rose.
Châteaux en Rudolph is another of the habitués of our chimney
Espagne. corner, representing the order of young knighthood in
America, and his dreams and fancies, if impracticable,
are always of a kind to make every one think him a good fellow. He
who has no romantic dreams at twenty-one will be a horribly dry
peascod at fifty; therefore it is that I gaze reverently at all Rudolph’s
châteaux in Spain, which want nothing to complete them except solid
earth to stand on.

Care The fact is that care and labor are as much correlated
inevitable to to human existence as shadow is to light; there is no
human nature. such thing as excluding them from any mortal lot. You
may make a canary-bird or a gold-fish live in absolute contentment
without a care or labor, but a human being you cannot. Human
beings are restless and active in their very nature, and will do
something, and that something will prove a care, a labor, and a
fatigue, arrange it how you will. As long as there is anything to be
desired and not yet attained, so long its attainment will be attempted;
so long as that attainment is doubtful or difficult, so long will there be
care and anxiety.

THE MAYFLOWER.

“Cuteness.” He possessed a great share of that characteristic

national trait so happily denominated “cuteness,” which
signifies an ability to do everything without trying, to know everything
without learning, and to make more use of one’s ignorance than
other people do of their knowledge.

Making It sometimes goes a great way towards making people

people like us. like us to take it for granted that they do already.
A common She therefore repeated over exactly what she said
mode of before, only in a much louder tone of voice, and with
reasoning. much more vehement forms of asseveration,—a mode
of reasoning which, if not entirely logical, has at least the sanction of
very respectable authorities among the enlightened and learned.

Danger in There is no point in the history of reform, either in

apparent communities or individuals, so dangerous as that
safety. where danger seems entirely past. As long as a man
thinks his health failing, he watches, he diets, and will undergo the
most heroic self-denial; but let him once set himself down as cured,
and how readily does he fall back to one soft, indulgent habit after
another, all tending to ruin everything that he has before done!

Self- How strange that a man may appear doomed, given

deception. up, and lost, to the eye of every looker-on, before he
begins to suspect himself!

Convenient What would people do if the convenient shelter of duty

duties. did not afford them a retreat in cases where they are
disposed to change their minds?

Too much A man can sometimes become an old bachelor

heart. because he has too much heart, as well as too little.

Privileged These privileged truth-tellers are quite a necessary of

truth-tellers.life to young ladies in the full tide of society, and we
really think it would be worth while for every dozen of
them to unite to keep a person of this kind on a salary for the benefit
of the whole.
Two kinds of There is one kind of frankness which is the result of
frankness. perfect unsuspiciousness, and which requires a
measure of ignorance of the world and of life; this kind
appeals to our generosity and tenderness. There is another which is
the frankness of a strong but pure mind, acquainted with life, clear in
its discrimination and upright in its intention, yet above disguise or
concealment; this kind excites respect. The first seems to proceed
simply from impulse, the second from impulse and reflection united;
the first proceeds, in a measure, from ignorance, the second from
knowledge; the first is born from an undoubting confidence in others,
the second from a virtuous and well-grounded reliance on one’s self.

PINK AND WHITE TYRANNY.

Genial and There are people who, wherever they move, freeze the
ungenial hearts of those they touch, and chill all demonstration
natures. of feeling; and there are warm natures, that unlock
every fountain, and bid every feeling gush forth.

Power of “Oh, nonsense! now, John, don’t talk humbug. I’d like to
beauty. see you following goodness when beauty is gone. I’ve
known lots of plain old maids that were perfect saints
and angels; yet men crowded and jostled by them to get at the pretty
sinners. I dare say now,” she added, with a bewitching look over her
shoulder at him, “you’d rather have me than Miss Almira Carraway,
—hadn’t you, now?”

Growing alike. “The thing with you men,” said Grace, “is that you want
your wives to see with your eyes, all in a minute, what
has got to come with years and intimacy, and the gradual growing
closer and closer together. The husband and wife, of themselves,
drop many friendships and associations that at first were mutually
distasteful, simply because their tastes have grown insensibly to be
the same.”
 DEACON PITKIN’S FARM.

A New Diana Pitkin was like some of the fruits of her native
England hills, full of juices which tend to sweetness in maturity,
woman. but which, when not quite ripe, have a pretty decided
dash of sharpness. There are grapes that require a frost to ripen
them, and Diana was somewhat akin to these.

AGNES OF SORRENTO.

Acceptable Then he had given her advice which exactly accorded

advice. with her own views; and such advice is always
regarded as an eminent proof of sagacity in the giver.

Dual nature. But, reviewing his interior world, and taking a survey of
the work before him, he felt that sense of a divided
personality which often becomes so vivid in the history of individuals
of strong will and passion. It seemed to him that there were two men
within him: the one turbulent, passionate, demented; the other vainly
endeavoring, by authority, reason, and conscience, to bring the rebel
to subjection. The discipline of conventual life, the extraordinary
austerities to which he had condemned himself, the monotonous
solitude of his existence, all tended to exalt the vivacity of the
nervous system, which in the Italian constitution is at all times
disproportionately developed; and when those weird harp-strings of
the nerves are once thoroughly unstrung, the fury and tempest of the
discord sometimes utterly bewilders the most practiced self-
government.

Power of an “Son, it is ever so,” replied the monk. “If there be a man
honest that cares neither for duke nor emperor, but for God
character. alone, then dukes and emperors will give more for his
good word than for a whole dozen of common priests.”
 “We old folks are twisted and crabbed and full of knots
Relation of with disappointment and trouble, like the mulberry-trees
age to youth.
that they keep for vines to run on.”

UNCLE TOM’S CABIN.

Persistence. “Dis yer matter ’bout persistence, feller-niggers,” said

Sam, with the air of one entering into an abstruse
subject, “dis yer ’sistency’s a thing what ain’t seed into very clar by
most anybody. Now, yer see, when a feller stands up for a thing one
day and night, de contrar’ de next, folks ses (an’ naturally enough
dey ses), Why, he ain’t persistent—hand me dat ar’ bit o’ corn-cake,
Andy. But let’s look inter it. I hope the gent’lmen and de fair sex will
scuse my usin’ an or’nary sort o’ ’parison. Here! I’m a tryin’ to get top
o’ der hay. Wal, I puts up my larder dis yer side; ’tain’t no go;—den,
’cause I don’t try dere no more, but puts my larder right de contrar’
side, ain’t I persistent? I’m persistent in wantin’ to get up which ary
side my larder is; don’t ye see, all on ye?”

The negro The negro, it must be remembered, is an exotic of the

most gorgeous and superb countries of the world, and
love of beauty.
he has, deep in his heart, a passion for all that is
splendid, rich, and fanciful; a passion which, rudely indulged by an
untrained taste, draws on him the ridicule of the colder and more
correct white race.

Effect of The ear that has never heard anything but abuse is
harshness. strangely incredulous of anything so heavenly as
kindness.

“Blessings Marie was one of those unfortunately constituted

brighten as mortals, in whose eyes whatever is lost and gone
assumes a value which it never had in possession.
they take theirWhatever she had she seemed to survey only to pick
flight.”
flaws in it; but once fairly away, there was no end to her
valuation of it.

DRED.

Speaking as a “Now, Miss Nina, I want to speak as a friend.”

friend.
“No, you sha’n’t; it is just what people say when they
are going to say something disagreeable. I told Clayton, once for all,
that I wouldn’t have him speak as a friend to me.”

’Scuses. “Ah, lots of ’scuses I keeps! I tell you now, ’scuses is

excellent things. Why, ’scuses is like dis yer grease dat
keeps de wheels from screaking. Lord bless you, de whole world
turns ’round on ’scuses. Whar de world be if everybody was such
fools to tell de raal reason for everyting they are gwine for to do, or
ain’t gwine for to!”

Use of a Every kind of creature has its uses, and there are times
chatterbox. when a lively, unthinking chatterbox is a perfect
godsend. Those unperceiving people who never notice
the embarrassment of others, and who walk with the greatest facility
into the gaps of conversation, simply because they have no
perception of any difficulty there, have their hour; and Nina felt
positively grateful to Mr. Carson for the continuous and cheerful rattle
which had so annoyed her the day before.

Good and evil It is our fatality that everything that does good must do
inseparable. harm. It is the condition of our poor, imperfect life here.

“Streaked
men.”
 “But den, you see, honey, der’s some folks der’s two
men in ’em,—one is a good one, and t’oder is very bad. Wal, dis yer
was jest dat sort.... He was one of dese yer streaked men, dat has
drefful ugly streaks; and, some of dem times, de Lord only knows
what he won’t do.”

First steps. There is something in the first essay of a young man, in

any profession, like the first launching of a ship, which
has a never-ceasing hold on human sympathies.

From differentThere is no study in human nature more interesting

standpoints. than the aspects of the same subject seen in the points
of view of different characters. One might almost
imagine that there were no such thing as absolute truth, since a
change of situation or temperament is capable of changing the whole
force of an argument.

Fine natures As good wine makes the strongest vinegar, so fine

perverted. nature perverted makes the worst vice.

SUNNY MEMORIES OF FOREIGN LANDS.

Lost There are some people who involve in themselves so

confidence. many of the elements which go to make up our
confidence in human nature generally, that to lose
confidence in them seems to undermine our faith in human virtue.

Wit. Truly, wit, like charity, covers a multitude of sins. A man

who has the faculty of raising a laugh in this sad,
earnest world is remembered with indulgence and complacency.
Value of ready But so it always is. The man who has exquisite gifts of
expression. expression passes for more, popularly, than the man
with great and grand ideas, who utters but imperfectly.

POGANUC PEOPLE.

Opinionated Miss Debby was one of those human beings who carry
people. with them the apology for their own existence. It took
but a glance to see that she was one of those forces of
nature which move always in straight lines, and which must be
turned out for if one wishes to avoid a collision. All Miss Debby’s
opinions had been made up, catalogued, and arranged at a very
early period of life, and she had no thought of change. She moved in
a region of certainties, and always took her own opinions for granted
with a calm supremacy altogether above reason. Yet there was all
the while about her a twinkle of humorous consciousness, a vein of
original drollery, which gave piquancy to the brusqueness of her
manner, and prevented people from taking offence.

Difficulty ofIt is curious that men are not generally ashamed of any
confession. form of anger, wrath, or malice; but of the first step
towards a nobler nature,—the confession of a wrong,—
they are ashamed.

LITTLE PUSSY WILLOW.

When people work hard all day, and have a good

Animal spirits.
digestion, it is not necessary that a thing should be very
funny to make them laugh tremendously.

First false Boys, and men too, sometimes, by a single step, and
step. that step taken in a sudden hurry of inconsideration,
get into a network of false positions, in which they are very uneasy
and unhappy, but live along from day to day seeing no way out.

QUEER LITTLE PEOPLE.

Marks of “Depend upon it, my dear,” said Mrs. Nut-cracker,

genius. solemnly, “that fellow must be a genius.”
“Fiddlestick on his genius!” said old Mr. Nut-cracker; “what does he
do?”
“Oh, nothing, of course; that’s one of the first marks of genius.
Geniuses, you know, never can come down to common life.”

A busy-body. Old Mother Magpie was about the busiest character in

the forest. But you must know that there is a great
difference between being busy and being industrious. One may be
very busy all the time, and yet not in the least industrious; and this
was the case with Mother Magpie.
She was always full of everybody’s business but her own,—up and
down, here and there, everywhere but in her own nest, knowing
every one’s affairs, telling what everybody had been doing or ought
to do, and ready to cast her advice gratis at every bird and beast of
the woods.

A DOG’S MISSION.

Broken idols. Do you, my brother, or grown-up sister, ever do

anything like this? Do your friendships and loves ever
go the course of our Charley’s toy? First, enthusiasm; second,
satiety; third, discontent; then picking to pieces; then dropping and
losing! How many idols are in your box of by-gone playthings? And
may it not be as well to suggest to you, when you find flaws in your
next one, to inquire before you pick to pieces whether you can put
together again, or whether what you call defect is not a part of its
nature? A tin locomotive won’t draw a string of parlor chairs, by any
possible alteration, but it may be very pretty for all that it was made
for. Charley and you might both learn something from this.

MY WIFE AND I.

Soul- “There are people in this world who don’t understand

language. each other’s vernacular. Papa and I could no more
discuss any question of the inner life together than if he
spoke Chickasaw and I spoke French.”

Characters It is a charming thing, in one’s rambles, to come across

worth a tree, or a flower, or a fine bit of landscape that we can
exploring. think of afterwards, and feel richer for its being in the
world. But it is more, when one is in a strange place, to come across
a man that you feel thoroughly persuaded is, somehow or other,
morally and intellectually worth exploring. Our lives tend to become
so hopelessly commonplace, and the human beings we meet are
generally so much one just like another, that the possibility of a new
and peculiar style of character in an acquaintance is a most
enlivening one.

Unsuspected The man who has begun to live and work by artificial
danger. stimulant never knows where he stands, and can never
count upon himself with any certainty. He lets into his
castle a servant who becomes the most tyrannical of masters. He
may resolve to turn him out, but will find himself reduced to the
condition in which he can neither do with nor without him.
In short, the use of stimulant to the brain power brings on a disease
in whose paroxysms a man is no more his own master than in the
ravings of fever, a disease that few have the knowledge to
understand, and for whose manifestations the world has no pity.
Heredity. Out of every ten young men who begin the use of
stimulants as a social exhilaration, there are perhaps
five in whose breast lies coiled up and sleeping this serpent,
destined in after years to be the deadly tyrant of their life—this curse,
unappeasable by tears, or prayers, or agonies—with whom the
struggle is like that of Laocoön with the hideous python, yet songs
and garlands and poetry encircle the wine-cup, and ridicule and
contumely are reserved for him who fears to touch it.

Personality. We are all familiar with the fact that there are some
people who, let them sit still as they may, and conduct
themselves never so quietly, nevertheless impress their personality
on those around them, and make their presence felt.

WE AND OUR NEIGHBORS.

Friendly A great deal of good sermonizing, by the way, is

gossip. expended on gossip, which is denounced as one of the
seven deadly sins of society; but, after all, gossip has
its better side; if not a Christian grace, it certainly is one of those
weeds which show a good warm soil.
The kindly heart, that really cares for everything human it meets,
inclines toward gossip in a good way. Just as a morning-glory throws
out tendrils, and climbs up and peeps cheerily into your window, so a
kindly gossip can’t help watching the opening and shutting of your
blinds, and the curling smoke from your chimney.

Persistency. If you will have your own way, and persist in it, people
have to make up with you.

Human nature is always interesting, if one takes it right side out.

Right side of
human nature.

Human It is rather amusing to a general looker-on in this odd

nettles. world of ours to contrast the serene, cheerful good faith
with which these constitutionally active individuals go
about criticising, and suggesting, and directing right and left, with the
dismay and confusion of mind they leave behind them wherever they
operate.
They are often what the world calls well-meaning people,
animated by a most benevolent spirit, and have no more intention of
giving offence than a nettle has of stinging. A large, vigorous, well-
growing nettle has no consciousness of the stings it leaves in the
delicate hands that have been in contact with it; it has simply acted
out its innocent and respectable nature as a nettle. But a nettle
armed with the power of locomotion on an ambulatory tour, is
something the results of which may be fearful to contemplate.

Flaws in Ideal heroes are not plentiful, and there are few gems
gems. that don’t need rich setting.

Impossibility People who hate trouble generally get a good deal of it.
of evading It’s all very well for a gentle, acquiescent spirit to be
trouble. carried through life by one bearer. But when half a
dozen bearers quarrel and insist on carrying one opposite ways, the
more facile the spirit, the greater the trouble.

Righteousnes Perhaps there is never a time when man or woman has

s through a better chance, with suitable help, of building a good
repentance. character, than just after a humiliating fall which has
taught the sinner his own weakness, and given him a sad experience
of the bitterness of sin.
 Nobody wants to be sold under sin, and go the whole length in
iniquity; and when one has gone just far enough in wrong living to
perceive in advance all its pains and penalties, there is often an
agonized effort to get back to respectability, like the clutching of the
drowning man for the shore. The waters of death are cold and bitter,
and nobody wants to be drowned.

“Whence is the feeling of satisfaction which we have

“I told you so.”
when things that we always said we knew turn out just
as we predicted? Had we really rather our neighbor would be proved
a thief and a liar than to be proved in a mistake ourselves? Would
we be willing to have somebody topple headlong into destruction for
the sake of being able to say, ‘I told you so’?”

Gossip. In fact, the gossip plant is like the grain of mustard-

seed, which, though it be the least of all seeds,
becometh a great tree, and the fowls of the air lodge in its branches,
and chatter mightily there at all seasons.
 CHAPTER III.
WOMAN.

THE MINISTER’S WOOING.

Woman as a “You girls and women don’t know your power. Why,
Gospel. Mary, you are a living Gospel. You have always had a
strange power over us boys. You never talked religion
much, but I have seen high fellows come away from being with you
as still and quiet as one feels when he goes into a church. I can’t
understand all the hang of predestination and moral ability, and
natural ability, and God’s efficiency, and man’s agency, which Dr.
Hopkins is so engaged about; but I can understand you,— you can
do me good.”

Holiness of “But do you remember you told me once that, when the
woman. snow first fell, and lay so dazzling and pure and soft all
about, you always felt as if the spreads and window
curtains, that seemed white before, were not clean? Well, it’s just like
that with me. Your presence makes me feel that I am not pure,—that
I am low and unworthy,—not worthy to touch the hem of your
garment. Your good Dr. Hopkins spent a whole half day, the other
Sunday, trying to tell us about the beauty of holiness; and he cut,
and pared, and peeled, and sliced, and told us what it wasn’t; and
what was like it, and wasn’t; and then he built up an exact definition,
and fortified and bricked it up all round; and I thought to myself that
he’d better tell ’em to look at Mary Scudder, and they’d understand
all about it.”

Woman Do you remember, at Niagara, a little cataract on the

ennobled by American side, which throws its silver, sheeny veil over
man’s love. a cave called the Grot of Rainbows? Whoever stands
on a rock in that grotto sees himself in the centre of a rainbow-circle,
above, below, around. In like manner, merry, chatty, positive, busy,
house-wifely Katy saw herself standing in a rainbow-shrine in her
lover’s inner soul, and liked to see herself so. A woman, by-the-bye,
must be very insensible, who is not moved to come upon a higher
plane of being herself, by seeing how undoubtingly she is insphered
in the heart of a good and noble man. A good man’s faith in you, fair
lady, if you ever have it, will make you better and nobler even before
you know it.

Power of real It is only now and then that a matter-of-fact woman is

love. sublimated by a real love; but if she is, it is affecting to
see how impossible it is for death to quench it.

Woman’s If women have one weakness more marked than

veneration. another, it is towards veneration. They are born
worshippers.... The fact is, women are burdened with
fealty, faith, and reverence, more than they know what to do with;
they stand like a hedge of sweet-peas, throwing out fluttering tendrils
everywhere for something high and strong to climb by,—and when
they find it, be it ever so rough in the bark, they catch upon it. And
instances are not wanting of those who have turned away from the
flattery of admirers to prostrate themselves at the feet of a genuine
hero who never wooed them, except by heroic deeds and the
rhetoric of a noble life.
Mother-love None of the peculiar developments of the female
for a son. nature have a more exquisite vitality than the sentiment
of a frail, delicate, repressed, timid woman, for a
strong, manly, generous son. There is her ideal expressed; there is
the outspeaking and outacting of all she trembles to think, yet burns
to say or do; here is the hero that shall speak for her, the heart into
which she has poured hers, and that shall give to her tremulous and
hidden aspirations a strong and victorious expression. “I have gotten
a man from the Lord,” she says to herself, and each outburst of his
manliness, his vigor, his self-confidence, his superb vitality, fills her
with a strange, wondering pleasure, and she has a secret
tenderness and pride even in his wilfulness and waywardness....
First love of womanhood is something wonderful and mysterious,—
but in this second love it rises again, idealized and refined; she loves
the father and herself united and made one in this young heir of life
and hope.

Mothers’ But even mothers who have married for love

inconsideratethemselves somehow so blend a daughter’s existence
ness. with their own as to conceive that she must marry their
love and not her own.

Repression. Her large brown eyes had an eager joy in them when
Mary entered; but they seemed to calm down again,
and she received her only with that placid, sincere air which was her
habit. Everything about this woman showed an ardent soul,
repressed by timidity and by a certain dumbness in the faculties of
outward expression; but her eyes had, at times, that earnest,
appealing language which is so pathetic in the silence of inferior
animals. One sometimes sees such eyes, and wonders whether the
story they intimate will ever be spoken in mortal language.

Woman’s Ah, that silence! Do not listen to hear whom a woman

instinctive praises, to know where her heart is! do not ask for
silence.
whom she expresses the most earnest enthusiasm! but if there be
one she once knew well whose name she never speaks,—if she
seems to have an instinct to avoid every occasion of its mention,—if
when you speak, she drops into silence and changes the subject,—
why, look there for something! just so, when going through deep
meadow-grass, a bird flies ostentatiously up before you, you may
know her nest is not there, but far off, under distant tufts of fern and
buttercup, through which she has crept with a silent flutter in her
spotted breast, to act her pretty little falsehood before you.

Idle talk. When Mrs. Twitchel began to talk, it flowed a steady

stream, as when one turns a faucet, that never ceases
running till some hand turns it back again.

Reverence “Who cares?” said Candace,—“generate or

the basis of unregenerate, it’s all one to me; I believe a man dat
faith. acts as he does. Him as stands up for de poor,—him as
pleads for de weak,—he’s my man. I’ll believe straight through
anyting he’s a mind to put at me.”

Mothers’ Most mothers are instinctive philosophers. No treatise

intuition. on the laws of nervous fluids could have taught Mrs.
Scudder a better rôle for this morning, than her tender
gravity, and her constant expedients to break and ripple, by changing
employments, that deep, deadly undercurrent of thoughts which she
feared might undermine her child’s life.

OLDTOWN FOLKS

Woman’s It is a man’s nature to act, to do, and when nothing can

nature. be done, to forget. It is a woman’s nature to hold on to
what can only torture, and live all her despairs over.
Women’s tears are their meat; men find the diet too salt, and won’t
take it.

Using “My forte lies in picking knowledge out of other folks

knowledge. and using it,” said Tina, joyously. “Out of the least little
bit of ore that you dig up, I can make no end of gold-
leaf.”

Mothers’ “Ain’t the world hard enough without fightin’ babies, I

work. want to know? I hate to see a woman that don’t want to
rock her own baby, and is contriving ways all the time
to shirk the care of it. Why, if all the world was that way, there would
be no sense in Scriptur’. ‘As one whom his mother comforteth, so
will I comfort you,’ the Bible says, takin’ for granted that mothers
were made to comfort children and give them good times when they
are little.”

The mother is “There’s no saying,” said Miss Mehitable, “you never

every woman. know what you may find in the odd corners of an old
maid’s heart, when you fairly look into them. There are
often unused hoards of maternal affection enough to set up an
orphan asylum; but it’s like iron filings and a magnet,—you must try
them with a live child, and if there is anything in ’em, you’ll find it out.
That little object,” she said, looking over her shoulder at Tina, “made
an instant commotion in the dust and rubbish of my forlorn old garret,
brought to light a deal that I thought had gone to the moles and the
bats long ago. She will do me good, I can feel, with her little
pertnesses, and her airs and fancies. If you could know how chilly
and lonesome an old house gets sometimes, particularly in autumn,
when the equinoctial storm is brewing! A lively child is a godsend,
even if she turns the whole house topsy-turvy.”

Individuality.
Tina had one of those rebellious heads of curls that every breeze
takes liberties with, and that have to be looked after, and watched,
and restrained. Esther’s satin bands of hair could pass through a
whirlwind and not lose their gloss. It is curious how character runs
even to the minutest thing,—the very hairs of our head are
numbered by it,—Esther, always and in everything self-poised,
thoughtful, reflective; Tina, the child of every wandering influence,
tremulously alive to every new excitement, a wind-harp for every air
of heaven to breathe upon.

A woman’s “The fact is, a man never sees a subject thoroughly till
view. he sees what a woman will think of it, for there is a
woman’s view of every subject, which has a different
shade from a man’s view, and that is what you and I have insensibly
been absorbing in all our course hitherto.”

PEARL OF ORR’S ISLAND.

Neighbor’s Duty is never more formidable than when she gets on

influence. the cap and gown of a neighbor.

Reserve. But it was not the little maiden’s way to speak when
anything thwarted or hurt her, but rather to fold all her
feelings and thoughts inward, as some insects, with fine gauzy
wings, draw them under a coat of horny concealment.

True courage. That kind of innocent hypocrisy which is needed as a

staple in the lives of women who bridge a thousand
awful chasms with smiling, unconscious looks, and walk, singing and
scattering flowers, over abysses of fear, when their hearts are dying
within them.