Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 5, Problem 37APQ
The AW values of three revenue alternatives are $ − 23,000 for A, $ − 21,600 for B, and $ − 27,300 for C. On the basis of these AW values, the correct decision is to:
- a. select alternative A.
- b. select alternative B.
- c. select alternative C.
- d. select the do nothing alternative.
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Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $780,000, an operating cost of $80,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,280,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a present worth analysis at a MARR of 12% per year? The present worth of process T is $− , and the present worth of process W is $− . The process selected on the basis of the present worth analysis is process (Click to select) .
Required information
One of two methods must be used to produce expansion anchors. Method A costs $65.000 initially and will have a
$14.000 salvage value after 3 years. The operating cost with this method will be $23,000 per year. Method B will have a
first cost of $140,000, an operating cost of $14,000 per year, and a $32.000 salvage value after its 3-year life. The interest
rate for both the methods is 15%.
Which method should be used on the basis of a present worth analysis?
The present worth of method A Is $
and that of method B is $
Method (Cick to solect) v is selected by the company.
Break-Even Point
Hilton Enterprises selis a product for $119 per unit. The variable cost is $68 per unit, while faed costs are $436,968.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit
a. Break-even point in sales units
units
b. Break-even point if the selling price were increased to 124 per unit
units
00
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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