Las Cruces' Virgin Galactic is considering two materials for certain parts in a reusable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison if MARR = 10% per year? (a) Solve using tabulated factors. (b) (Spreadsheet exercises) Solve using single-cell functions. (c) Using your spreadsheet functions, will the selection change if the estimated life of the CFRP material is 4, rather than 2, years?

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Las Cruces' Virgin Galactic is considering two materials
for certain parts in a reusable space vehicle: carbon fiber
reinforced plastic (CFRP) and fiber reinforced ceramic
(FRC). The costs are shown below. Which should be
selected on the basis of a present worth comparison if
MARR = 10% per year? (a) Solve using tabulated factors.
(b) (Spreadsheet exercises) Solve using single-cell
functions. (c) Using your spreadsheet functions, will the
selection change if the estimated life of the CFRP
material is 4, rather than 2, years?
Material
CFRP
First cost, $
Maintenance cost, $/year -29,000
Salvage value, $
2,000
Life, years
FRC
-205,000 -235,000
-27,000
20,000
2
4
Transcribed Image Text:Las Cruces' Virgin Galactic is considering two materials for certain parts in a reusable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison if MARR = 10% per year? (a) Solve using tabulated factors. (b) (Spreadsheet exercises) Solve using single-cell functions. (c) Using your spreadsheet functions, will the selection change if the estimated life of the CFRP material is 4, rather than 2, years? Material CFRP First cost, $ Maintenance cost, $/year -29,000 Salvage value, $ 2,000 Life, years FRC -205,000 -235,000 -27,000 20,000 2 4
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