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 54P
To determine

Calculate the capitalized cost.

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For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years A -15,000 -1,600 3.000 (a) = = -10000 (b) = 13200 (c) =6000 (a) = -10000 (b) = -1800 (c) = 4200 3 (a) = -10000 (b) = 13200 (c) = 4200 (a) = -10000 (b) = -1800 (c) = 3000 B -25,000 -400 6.000 6
A professional mechanics who specializes in truck engines paid $46,000 for equipment that will have a $4800 salvage value after 5 years. The costs with each usage amount to $60 per day. The income is $290 per day for his services, how many days per year must he be worked in order to break even at an interest rate of 7% per year?
Handheld fiber-optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If a base unit sells for $2950 and its variable cost is $2075, (a ) how many units must be sold each year for breakeven? (b ) what will the profit be for sales of 3000 units per year?

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Basics Of Engineering Economy

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