Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 5, Problem 30P
To determine
Calculate the annual worth.
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A large textile company is trying to decide among three alternatives of sludge dewatering g, processes. The costs
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costs. If the MARR is 14% per year, which alternative should be chosen? \table[[Alternative,x,Y,Z
6) A large textile company is trying to decide among three alternatives of sludge dewatering
processes. The costs associated with these alternatives are shown below. Alternative Y
will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z
would be replaced with another alternative Z having the same installed and operating
costs. If the MARR is 14% per year, which alternative should be chosen?
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Y
Z
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$48,500 $33,500
Annual operating costs.
$6000
$4000
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A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water for its businesses and residences. After government
subsidies, the capital investment for the well is $418,000, and the geothermal well will reduce natural gas consumption for steam and hot water production by
$50,000 per year. The salvage value of the well is negligible. The simple payback period for this well is 9 years. If the MARR of the town is 6% per year and the
life of the geothermal well is 25 years, what is the IRR for this project?
Choose the closest answer below.
OA. The IRR for the project is 12.1% per year.
OB. The IRR for the project is 8.3% per year.
OC. The IRR for the project is 13% per year.
OD. The IRR for the project is 11.1% per year.
CXX
A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water for its businesses and residences. After
government subsidies, the capital investment for the well is $732,000, and the geothermal well will reduce natural gas consumption for
steam and hot water production by $60,000 per year. The salvage value of the well is negligible. The simple payback period for this well is
13 years. If the MARR of the town is 5% per year and the life of the geothermal well is 23 years, what is the IRR for this project?
Choose the closest answer below.
A. The IRR for the project is 6.1% per year.
B. The IRR for the project is 7% per year.
O C. The IRR for the project is 7.4% per year.
O D. The IRR for the project is 3.9% per year.
Chapter 5 Solutions
Basics Of Engineering Economy
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
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