ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 48P
To determine
The best project for the organization with higher equivalent uniform annual worth.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $56417, a maintenance costs that start at $5,000 at end of year (FOY) one and increase by $1,000 for esch of the next four years, and then remain constant for the following five years; savings of $24851 per year (EOY 1-10); and finally a resale value of $31935 at EOY 10 If the project has a 10 year life and the firm's MARR is 10% per yeat, what is the present worth of the project?.
An existing bottling plant requires investing $50,000 per year starting next year for 10 years. The plant is expected to generate a revenue of $30,000 per year starting next year and increasing by S5000 per year thereafter The plant will be sold for $2500 after 10 years. The correct Standard Notation and expected Rate of Return is:
1) All engineering economy problems involve the element of time n and interest rate i
Select one:
True
False
2) In practice, interest rates do not stay the same over time unless by contractual obligation.
Select one:
True
False
3) When interest over a specific time unit is expressed as a percentage of the original amount (principal), the result is called rate of return.
Select one:
True
False
Chapter 9 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 9 - Prob. 2QTCCh. 9 - Prob. 3QTCCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
Ch. 9 - Prob. 9PCh. 9 - Prob. 10PCh. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 54PCh. 9 - Prob. 55PCh. 9 - Prob. 56PCh. 9 - Prob. 57PCh. 9 - Prob. 58PCh. 9 - Prob. 59PCh. 9 - Prob. 60PCh. 9 - Prob. 61PCh. 9 - Prob. 62PCh. 9 - Prob. 63PCh. 9 - Prob. 64PCh. 9 - Prob. 65PCh. 9 - Prob. 66PCh. 9 - Prob. 67PCh. 9 - Prob. 68PCh. 9 - Prob. 69PCh. 9 - Prob. 70PCh. 9 - Prob. 71PCh. 9 - Prob. 72PCh. 9 - Prob. 73PCh. 9 - Prob. 74PCh. 9 - Prob. 75PCh. 9 - Prob. 77PCh. 9 - Prob. 78PCh. 9 - Prob. 79PCh. 9 - Prob. 80PCh. 9 - Prob. 81PCh. 9 - Prob. 83PCh. 9 - Prob. 84PCh. 9 - Prob. 85PCh. 9 - Prob. 86PCh. 9 - Prob. 87PCh. 9 - Prob. 88P
Knowledge Booster
Similar questions
- polarization 5. Handheld fiber-optic meters with white light interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are Php40M per year. If a base unit sells for Php180k and its variable cost is Php120k, A. how many units must be sold each year for breakeven and B. what will the profit be for sales of 3000 units per year?arrow_forward27) For the following alternatives, (a) find the maximum cost you can spend on alternative A to break even with alternative B if the interest rate is 10% per year. (b) repeat A following expected lives, 5, 8, 10, 12, 15 years using Spreadsheet and Goal seek tool.arrow_forwardValerie Johnson is due to graduate from CSU-Stanislaus next December, with a degree in Business Administration and she has decided to go in business for herself. The feasibility study she concluded last month clearly indicates that sports bikes currently have a huge potential in the San Joaquin Valley, Thus, she decided to import sports bikes that she will sell in the Valley. She has narrowed down the import sources for these bikes to three countries: China, India, and South Africa. She only needs your help figuring out how much she would have to pay in custom duties, based on the import duty policies applicable to each of these countries (the policies are stated below): The current import duties policy for bikes imported from India states: "Sports bikes originating from India shall face a 20% duty, perbike." Assuming that each of these bikes is valued at $800 (Port of San Francisco), how much will Valerie Johnson I have to pay in duties, per bike? Ⓒ$160 Ⓒ$1,100. $1.120. 1820 Oso…arrow_forward
- A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. The small pipeline has an initial investment cost of $10,000 and the operating cost on the pipeline for 5 years. The operating cost averages are steady at $500 per year for the first 3 years, and will be $700 in year 4, $900 in year 5. A large-diameter pipeline has an initial investment cost of $8,500, but its annual operating cost is not known. If your company would like to choose a large- diameter pipeline due to the practical use and various factors, what is the maximum operating cost average of a large-diameter pipeline in each year? (At an interest rate of 10%) Assume The salvage value is 20% of the first cost for a small pipeline at the end of the 5- year period. The salvage value is 11% of the first cost for a…arrow_forwardWall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 3% per month? Wall's Pharmacy will have to sell a new product for __ months.arrow_forwardSelect the best alternative through internal rate of return analysis. Assume that the minimum attractive rate of return is 10% per year. Machine X |Machine YInitial cost $ 400,000.00 $ 500,000.00Annual operating cost $ 15,000.00 |$ 25,000.00 Annual profit $ 20,000.00 |$ 40,000.00Residual value $ 85,000.00 |$ 100,000.00Project life 15 years | none Engineering Economic Analysisarrow_forward
- GMA will be visiting an automobile plant. It was decided by the plant management that they must paint the plant. Boysen paint costs Php 70 per gallon and covers 350 sq. ft. per gallon. The manufacturer claims that it will last 5 years and can be applied at a rate of 100 sq. ft. per hour. General paint costs Php 100 per gallon and covers 500 sq. ft. per gallon. It will last for 4 years and can be applied at a rate of 125 sq. ft. per hour. If the painter is Paid Php 15 per hour, which paint should be used?arrow_forwardEvaluating investments with requires special procedures. The investments must be placed on the for each investment or by converting the. 1) different economic time horizons; greatest common factor; present values to annuity equivalents 2) variable economic time horizons ; least common denominator of time; present values to annuity equivalents 3) variable economic time horizons; greatest common factor; present values to annuity equivalents different economic time horizons; least common denominator of time; 4) present values to annuity equivalentsarrow_forward(c) Show that for any initial condition p(0) = po > 0, the flow converges to a fixed point p* > 0.arrow_forward
- The most possible values of an investment project are as follows: First cost, $ 300,000 Annual operating cost, $ 10,000 Annual benefit, $ 120,000 Salvage value, $ 80,000 Life, year 30 MARR per year 15% The most uncertain parameters are annual operating cost and annual benefit. Perform a multiparameter sensitivity analysis and write your conclusionsarrow_forwardAlternative Overall Incremental Rate Of Return in % When Initial Alternative Investment,$ Rate of Return, % Compared with Alternative A В A - 40,000 29 B - 75,000 15 1 -100,000 16 7 20 D -200,000 14 10 13 12 If the alternatives are independent, which should be selected if the company's MARR is 15% per year? (Include: procedure and explain) O Only alternative A O Alternatives A and B O Alternatives A and C Alternatives A, B, and C O Oarrow_forwardA firm is considering the “make vs. buy” question for a subcomponent. If the part is made in-house, the production data would be: first cost = $350, 000; annual costs for operation = $45, 000; salvage value = $15, 000; project life = 5 years; interest = 10%; and material cost per unit = $8.50. If annual production is 10,000 units, the maximum amount that the firm should be willing to pay to an outside vendor for the subcomponent is nearest? (a) $10 per unit (b) $16 per unit (c) $22 per unit (d) $28 per unit?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education