Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 11, Problem 37FE
To determine
Profitability of the project.
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2. The cash flows from a contemplated project are assumed to have a Beta distribution with
following estimated values:
EOY
0
Pessimistic, Yp
S-14,000
1
0
2
5,000
3
8,000
Most likely
$-12,000
2,000
8,000
12,000
Optimistic, Yo
$-10,000
4,000
11,000
16,000
(a) Calculate the means and standard deviations of the cash flow for each year.
(b) Assume MARR-15%, find the the mean and standard deviation of the net present
value. (Assume the cash flows are completely independent.)
CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has
annual fixed costs totaling $240,000 and variable costs of $6 per unit.
Each unit of product is sold for $30. Victoria expects to sell 12,000
units this year (this is the base case).
Required:
1. Find the break-even point in units.
2. How many units must be sold to earn an annual profit of
$100,000? (Round to the nearest unit.)
3. Find the break-even point in sales dollars.
4. What amount of sales dollars is required to earn an annual profit of
$140,000?
Show that the same selection is made with:
a. The PW Method
b. The IRR method
c. The ERR method
d. Would leasing crane A for nine years, assuming the same costs per year as for three years, be preferred over your present selection?
(ϵ = MARR = 15%)
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
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