Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 7, Problem 46P
To determine
Select the alternative based on the ATCF.
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Machine “A” has a starting cost of $ 50,000 with an estimated period of 12 years and a salvage value of $ 14,000. Annual O&M costs are $ 6,000 the first year, $ 6,300 the second year, and so on. Another Alternative is machine “B” which has an initial cost of $ 30,000 and a recovery value of $ 3,000 at the end of the 12-year service period, the annual operating and maintenance expenses are $ 8,000 the first year, from $ 8,500 the second year and so on. Using an interest rate of 13% per year. Do a Present Value analysis, and determine the value of machine A
Machine J has a first cost of $50,000, an estimated service period of 12 years, and an
estimated salvage value of $14,000 at the end of the 12 years. Estimated annual
disbursements for operations and maintenance are $6,000 for the first year, $6,300 for the
second year, and will increase $300 each year thereafter. An alternate is Machine K,
which has a first cost of $30,000 and an estimated zero salvage value at the end of the 12-
year service period. Estimated annual disbursements for operation and maintenance are
$8,000 for the first year, $8,500 the second year, and will increase $500 each year
thereafter. Estimated extra income taxes with Machine J are $750 the first year, $850 the
second, and will increase $100 each year thereafter. Using an after-tax i* of 12%
compare the equivalent uniform annual cost of a 12-year service from Machines J and K.
Avocado has received a special order for 2,400 units of its product at a special price. The product normally sells for $440 and has the following
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Per unit
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$128
Direct labor
83
Variable manufacturing overhead
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Fixed manufacturing overhead
120
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Chapter 7 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 7 - How are depreciation deductions different from...Ch. 7 - Prob. 2PCh. 7 - Explain the difference between real and personal...Ch. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10P
Ch. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - A manufacturer of aerospace products purchased...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 30PCh. 7 - Prob. 31PCh. 7 - Prob. 32PCh. 7 - Prob. 33PCh. 7 - Prob. 34PCh. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Prob. 47PCh. 7 - Prob. 48PCh. 7 - Prob. 49PCh. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Determine the after-tax yield (i.e., IRR on the...Ch. 7 - A 529-state-approved Individual Retirement Account...Ch. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - Prob. 57SECh. 7 - Prob. 58SECh. 7 - Prob. 59SECh. 7 - Prob. 60SECh. 7 - Prob. 61FECh. 7 - Prob. 62FECh. 7 - Prob. 63FECh. 7 - Prob. 64FECh. 7 - Prob. 65FECh. 7 - Prob. 66FECh. 7 - Prob. 67FECh. 7 - Prob. 68FECh. 7 - Prob. 69FECh. 7 - Prob. 70FECh. 7 - Prob. 71FECh. 7 - Prob. 72FECh. 7 - Prob. 73FECh. 7 - Prob. 74FECh. 7 - Prob. 75FECh. 7 - If the federal income tax rate is 35% and the...Ch. 7 - Prob. 77FECh. 7 - Prob. 78FECh. 7 - Prob. 79FECh. 7 - Prob. 80FECh. 7 - Prob. 81FECh. 7 - Prob. 82FECh. 7 - Prob. 83FECh. 7 - Prob. 84FE
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