Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem 2P
Refer to Example 11-2. Assuming gasoline costs $4.00 per gallon, find the breakeven mileage per year between the hybrid vehicle and the gas-only vehicle. All other factors remain the same.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee.Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL KMS
TOTAL COSTS (TC)
48000KM
AVG. FIXED COSTS/KM
AVG. VARIABLE COSTS/KM
S
AVG. TOTAL COSTS/KM
S
Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee. Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
$
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL COSTS (TC)
TOTAL KMS
AVG. FIXED COSTS/KM
$
AVG. VARIABLE COSTS/KM
$
AVG. TOTAL COSTS/KM
$
48000KM
Car A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for Car B. Both vehicles last 10 years and B's salvage value is $175 smaller than A's. Fuel costs $2.30/gallon. Other things being equal, beyond how many miles of use per year (x) does A become preferable to B?
Chapter 11 Solutions
Engineering Economy (17th Edition)
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Least-cost abatement curve Solar PV Nuclear Feasible set Coal CCS new build Low-penetration wind Coal CCS retrofit High-penetration wind Iron and steel CCS new build 8.37 billion euros Cost of abatement (billions € = cost per tonne abated x gigatonnes abated) %3D Environmental quality, E (amount abated, GTCO,) 11.2 GTCO, 4.94 GTCO,arrow_forwardSimplifying [(n+1)! / n!] gives what?arrow_forwardEngineering Economics 00011 Please provide a step by step solution using RORarrow_forward
- The surface of a certain building that requires painting is 2,000 sq.meter. Two kinds of paint are available whose brands are A and B. Paint A costs P10.50 per sq.m. but needs renewal at the end of 4 years, while paint B costs P15.00 per sq. meter. If money is worth 12% effective, how often should paint B be renewed so that it will be as economical as Paint A? Show full solutionarrow_forwardA firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,025.00 per year for 8 years and costs $102,242.00. The ÚGA-3000 produces incremental cash flows of $27,530.00 per year for 9 years and cost $126,773.00. The firm's WACĆ is 8.37%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.arrow_forwardSHOW COMPLETE SOLUTION PLS BADLY NEEDED ASNWERSarrow_forward
- Instead of selling or getting rid thier car after 4 years, Frank decide to start using their vehicle in a business Frank will be providing ride hailing service with their vehicle (UBER). See below for the graph of the total ar average costs for the next 7 years. The total fixed costs are 30000 for this period. Price Per KM($) 3.6 3.2- 2.8 2.4- 2 1.6- 1.2 0.8- 0.4 اه 130 A C D B KM DRIVEN (000s KM) PLEASE COMPLETE TABLE BELOW ONLY USING ABOVE INFORMATION A = 47,000 KM B = 59,000 KM C = 71,000 KM D = 77,000 KMarrow_forwardA government monument is being built that is expected to last forever. The first cost is $7,000,000. At the end of every 8 years, there will be a major remodeling cost of $300,000. At the end of year 12, there will be a one-time remodeling cost of $450,000. Annual Operating & Maintenance Costs will total $40,000 for each year. i = 6% per year. a) Draw the fully labeled cash flow diagram. b) Calculate the capitalized cost? c) What is the equivalent uniform annual cost?arrow_forwardThe purchase of a used pickup for $22,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $1950 per year if the truck is driven 12,500 miles. The salvage value after 6 years of use drops about 15¢ per mile. Find the equivalent uniform annual cost if the interest rate is 5%. How much does this change if the annual mileage is 15,000? 10,000?arrow_forward
- The powerfull expert Hand written solution is not allowedarrow_forwardWhich alternative in the table below should be selected when the MRR = 6% per year? The life of each Kalternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less. Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is %. (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 2arrow_forwardIf APC is 0.75 and MPC is 1, how much will be APS.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
The growing economy of the electric car industry; Author: TRT World;https://www.youtube.com/watch?v=Qh2jXn_akmk;License: Standard Youtube License