Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 17P
To determine

Calculate the breakeven vehicles.

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A replacement electric motor is being considered for purchase. It is capable of providing 200.00 hp. The pertinent data are as follows: Cost $5,782.91 Maintenance cost per year 180.31 Useful Life 14 years Salvage value $2.268.56 The motor is used for 400 hours/year and the cost of electricity is $0.06/kW"h (1 hp - 0.746 kW). What is most nearly the effective annual cost using an interest rate of 10%?
A shoe factory has a production capacity of 9,600 units per month. The fixed and variable costs are as follows: Fixed monthly operating cost = P 900,000.00 Material and labor cost = P 200/unit Selling price = P500/unit What is the profit per month if the factory has an efficiency of 80%?
A 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?
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