Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 8P
To determine
Calculate the interest rate.
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"There are three machines in the mechancical engineering lab A. B, and C and need to be evaluated economically. Machine A has a first cost of $4500, an annual
operating cost (AOC) of $900, a salvage value of $200, and a service life 4 years. Machine B has a first cost of $3500, an annual operating cost (AOC) of $700, a
salvage value of $350 and a service life 4 years. Machine C has a first cost of $6000, an annual operating cost (AOC) of $50, a salvage value of $100, and a service
life 8 years. What is the present worth for machine C? The MARR is 10% per year"
-$6,250
-$6,222
-$7,002
-$6,300
O O O O
The young and wow expert Hand written solution is not allowed.
Solve and show solutions completely. Draw the cash flow diagrams.
A man was offered a Land Bank Certificate with a face value of P100,000 which bears interest of 8% per year payable semi-annually and due in 6 years. If the man wants to earn 6% semi-annually, how much must he pay for the certificate?
Chapter 6 Solutions
Basics Of Engineering Economy
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - A University of Massachusetts study found that...Ch. 6 - Prob. 10P
Ch. 6 - The Closing the Gaps initiative by the Texas...Ch. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 6 - A company that manufactures rigid shaft couplings...Ch. 6 - For each of the following scenarios, state whether...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - The four alternatives described below are being...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Ashley Foods, Inc. has determined that only one of...Ch. 6 - Five revenue projects are under consideration by...Ch. 6 - Four different machines are under consideration...Ch. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 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 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60APQCh. 6 - Prob. 61APQCh. 6 - Prob. 62APQCh. 6 - Prob. 63APQCh. 6 - Prob. 64APQCh. 6 - Prob. 65APQCh. 6 - Prob. 66APQCh. 6 - Prob. 67APQCh. 6 - Prob. 68APQCh. 6 - Prob. 69APQCh. 6 - Prob. 70APQ
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- The analysis techniques that are used in engineering economic analysis are only as good as what?arrow_forwardCheck my work Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $740,000, an operating cost of $98.000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,180,000, 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 $- The process selected on the basis of the present worth analysis is process W and the present worth of process W is $-arrow_forwardS Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product? The rate of return the company made on the product is 4.51 %.arrow_forward
- The wow expert Hand written solution is not allowed.arrow_forwardABZ is a manufacturer of household appliances. Over a 5-year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000, and the used equipment was salvaged for $4000. What rate of return did the company make on this product?.arrow_forwardA company that manufactures brushes blowers invested $650,000 in an automated quality controlsystem for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipmenthad a salvage value of $50,000, what rate of return per year did the company make? (Initial guess i = 5%)arrow_forward
- A man was offered a bank certificate with a face value of P100,000 which is baring interest of 8% per year payable semi-annually and due in 6 years. If he wants to earn 6% semi-annually, how much must he pay the certificate? This is engineering economics.arrow_forwardA professional mechanics who specializes in truck engines paid $50,000 for equipment that will have a $2000 sahvage value after 6 years The costs with each usage amount to $75 per day The income is $270 per day for his services, how many days per year must he be worked in order to break even at an interest rate of 8% per year?arrow_forwardFor 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 6arrow_forward
- A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $7000 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1600. A new power line will cost $14000 to install, with power costs expected to be $1300 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 8.00% per year, which alternative should be selected on the basis of a future worth analysis? (Include a minus sign if necessary.) The future worth of solar cells is $[ and that of electric line is $ (Click to select) :) should be selected on the basis of a future worth analysis.arrow_forwardThe super Expert Hand written solution is not allowedarrow_forwardConstruct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $24,000 now and $3,000 per year for 7 years at an interest rate of 12% per year. I hope someone can help me and explain how it is solvedarrow_forward
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