Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 16P

a:

To determine

Calculate the present worth.

b:

To determine

Calculate the present worth through calculator.

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Polypropylene wall caps, used for covering exterior vents for kitchen cooktops. bathroom fans, dryers, and other building air exhausts. can be made by two different methods. Method X will have a first cost of $75,000. an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method Y will have a first cost of $140,000. an operating cost of $24,000 per year, and a $19,000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis? 10% TABLE 15 Discrete Cash Flow: Compound interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Amount Capital Recovery Present Sinking Fund Compound Amount Present Gradient Gradient Worth Worth Present Worth Uniform Series F/P P/F A/F F/A A/P P/A P/G A/G L1000 110000 0.9091 09091 08264 10000 0.47619 0.30211 10000 04762 0.9366 12100 21000 0.57619 0.40211 1.7355 13310 0.7513 3.3100 2.4869 23291 14641 06830 0.21547 4,6410…
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To produce an item in-house, equipment costing $250,000 must be purchased. It will have a life of 4 years and an annual cost of $80,000; each unit will cost $40 to manufacture. Buying the item externally will cost $100 per unit. At i = 12%, determine the breakeven production number.

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Basics Of Engineering Economy

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