Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 85FE
Problems 6-82 through 6-85. (6.4)
Table P6-82 Data for Problems 6-82 through 6-85
6-85. Using a MARR of 15%, the preferred Alternative is:
- a. Do Nothing
- b. Alternative A
- c. Alternative B
- d. Alternative C
- e. Alternative D
- f. Alternative E
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Chapter 6 Solutions
Engineering Economy (17th Edition)
Ch. 6 - An oil refinery finds that it is necessary to...Ch. 6 - The Consolidated Oil Company must install...Ch. 6 - One of the mutually exclusive alternatives below...Ch. 6 - Three mutually exclusive design alternatives are...Ch. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Fiesta Foundry is considering a new furnace that...Ch. 6 - Prob. 8PCh. 6 - DuPont claims that its synthetic composites will...Ch. 6 - Prob. 10P
Ch. 6 - Which alternative in the table below should be...Ch. 6 - Prob. 12PCh. 6 - The alternatives for an engineering project to...Ch. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Refer to the situation in Problem 6-16. Most...Ch. 6 - An old, heavily used warehouse currently has an...Ch. 6 - Prob. 19PCh. 6 - Two electric motors (A and B) are being considered...Ch. 6 - Two mutually exclusive design alternatives are...Ch. 6 - Pamela recently moved to Celebration, Florida, an...Ch. 6 - Environmentally conscious companies are looking...Ch. 6 - Prob. 24PCh. 6 - Two 100 horsepower motors are being considered for...Ch. 6 - In the Rawhide Company (a leather products...Ch. 6 - Refer to Problem 6-2. Solve this problem using the...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Two electric motors are being considered to drive...Ch. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Potable water is in short supply in many...Ch. 6 - Three mutually exclusive investment alternatives...Ch. 6 - Prob. 36PCh. 6 - A companys MARR is 10% per year. Two mutually...Ch. 6 - Prob. 38PCh. 6 - a. Compare the probable part cost from Machine A...Ch. 6 - A one-mile section of a roadway in Florida has...Ch. 6 - Two mutually exclusive alternatives are being...Ch. 6 - Prob. 42PCh. 6 - IBM is considering an environmentally conscious...Ch. 6 - Three mutually exclusive earth-moving pieces of...Ch. 6 - A piece of production equipment is to be replaced...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Use the imputed market value technique to...Ch. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Three models of baseball bats will be manufactured...Ch. 6 - Refer to Example 6-3. Re-evaluate the recommended...Ch. 6 - Prob. 69SECh. 6 - Prob. 70SECh. 6 - Prob. 71SECh. 6 - Prob. 72CSCh. 6 - Prob. 73CSCh. 6 - Prob. 74CSCh. 6 - Prob. 75FECh. 6 - Prob. 76FECh. 6 - Prob. 77FECh. 6 - Complete the following analysis of cost...Ch. 6 - Prob. 79FECh. 6 - For the following table, assume a MARR of 10% per...Ch. 6 - Prob. 81FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Prob. 83FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Consider the mutually exclusive alternatives given...Ch. 6 - Prob. 87FE
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- There are two mutually exclusive projects Alpha and Beta. The Alpha alternative has a life of 3 years, an initial cost of $11,000, an expected annual income of $7,000, and a salvage value after 3 years of $2,000. The Beta alternative has a life of 5 years and is expected to have an annual income of $7,000, but the initial cost will be $17,000, with a salvage value of $3,000. A MARR of 9% will be used for the analysis. Solve: USING EXCEL (show the forumla) 1) Which project would be chosen using the Truncated Method and the VAE? 2) Calculate the discounted payback period of the second. 3) Index of profitability of the first 4) The IRR of the first.arrow_forwardEvaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method Annual worth method Future worth method I.R.R method E.R.R Method E.R.R.R method M.A.R.R = 15% the details of alternatives are shown in the table below Alternatives A Investments $6,000 $7,500 Useful life (years) 10 Annual disbursements $2,500 $3,500 Annual revenues $4,500 $6,000 Salvage values $500 $1,000arrow_forwardThe estimated negative cash flows for three design alternatives are shown below. The MARR is 13% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses EOY 0 A. Alternative B B. Alternative A C. Alternative C 1-4 A $82,400 6,200 Alternative B $64,500 12,100 с $71,900 9,550 Which alternative would you choose as a base one? Choose the correct answer below.arrow_forward
- There are three alternatives X,Y,Z. With 10% MARR, which alternative should be chosen based on following conditions and why? For X, initial cost is $10k, yearly revenue is $6K, Salvage is $1k and useful life is calculated as 2yrs. For Y, initial cost is $15k, yearly revenue is $10K, Salvage is -$2k and useful life is calculated as 3yrs. For Z, initial cost is $12k, yearly revenue is $5K, Salvage is $3k and useful life is calculated as 4yrs.arrow_forwardConsider the five investment alternatives described below. Which alternatives can be eliminated from an incremental ROR analysis by applying short cuts for an investor with a MARR of 10%? Each alternative has a 5-year life and no salvage value. Initial cost Alternative ROR (%) (Sk) 60 14 45 20 50 18 D 30 25 75 12 Can eliminate do-nothing and C Can eliminate do-nothing and A Can eliminate do-nothing and E Can eliminate do-nothing onlyarrow_forwardConsider the following two investment alternatives. Determine the range of investment costs for Alternative B (i.e., min. valuearrow_forwardFive alternatives are being evaluated by the incremental rate of return method. Initial investment Overall ROR (TL) Alternative Incremental ROR (%) (%) B E -23.000 9.6 12.3 8.2 23.3 31.1 -37.000 12.2 5.2 23.5 22.4 -42.000 17.4 6.5 27.3 D -50.000 14.4 9.8 E -75.000 25.7 If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative? O a. B O b.C O c.D Od.E e. Aarrow_forwardOptions for iii are "knows" and "doesn't know"arrow_forwardCarlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $23,500 per year. An emission reduction filter will cost $85,000 and have an expected life of 5 years. Carlisle's MARR is 10%/year. Part a Your answer is incorrect. What is the future worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.arrow_forwardSnip & Sketch Sales price Equipment cost Overhead cost Operating and maintenance cost Production time per 1,000 units Study period (planning horizon) MARR New 44 I $12.50 per unit $200,000 $50,000 per year 5 years 15% per year 0 $25 per operating hour 100 hours x An electronics firm is planning to manufacture a new handheld gaming device for the preteen market. The data have been estimated for the product. Assuming a negligible market (salvage) value for the equipment at the end of five years, determine the breakeven annual sales volume for this product. Click the icon to view the data estimated for the product. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is nearest whole number.) units. (Round to thearrow_forwardHospital is evaluating the purchase of new office equipment from three vendors. Assume MARR=15% and 4 year useful life on all equipment. Select best vendor. What is the best vendor?arrow_forwardThe estimated negative cash flows for three design alternatives are shown below. The MARR is 10% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses OA. Alternative B OB. Alternative C OC. Alternative A EOY 0 1-4 A $85,700 8,500 Alternative B $64,500 Which alternative would you choose as a base one? Choose the correct answer below. 15,150 C $71,900 12,450arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
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