ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 7, Problem 68P
To determine

Rate of return which will help in finding that in which technologies should manager invests.

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Precision Engineering Factory consumes 50,000 units of a component per year. The ordering, receiving and handling costs are Rs 3 per order while the trucking costs are Rs 12 per order. Further details are as follows: deterioration and obsolescence cost Rs 0.004 per unit per year; interest cost Re 0.06 per unit per year; storage cost Rs 1,000 per year for 50,000 units. Calculate the economic order quality.
A company has invested in machinery that $23,000 to purchase and install and the company purchased a 3 year warranty for $5,000. The warranty covers all maintenance and repairs for three years with no cost to the company. At year 4, the maintenance costs are estimated at $2,000 and will increase by $1,200 per year after that. Operating costs are expected to be $800 every year. The machinery will last nine years. If the interest rate is 6%, what is the machinery's economic life that minimizes the EUAC?
an engineer knows that the supplier of their set-5100 laser surface metrology system used on one of their lines superseded their 5100 model with the 5105. the new model has a net cost of $420000. adding the new 5105 model to the production line would in decrease scrap rate estimated to save 630000 in the first year. the rate of return for on the set-5105 purchase is 13% MEMD IS 15% what is the opportunity cost

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ENGR.ECONOMIC ANALYSIS

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