Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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A small company heats its building and spends $8,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting
one year from now (i.e., the first cash flow is $9,592 at EOY one). Their maintenance on the gas furnace is $355 per year, and this expense is expected to increase by
12% per year starting one year from now (i.e. the first cash flow for this expense is $397.60 at the EOY one). If the planning horizon is 14 years, what is the total
annual equivalent expense for operating and maintaining the furnace? The interest rate is 15% per year.
Click the icon to view the interest and annuity table for discrete compounding when /- 0% per year.
Click the icon to view the interest and annuity table for discrete compounding when /-12% per year.
Click the icon to view the interest and annuity table for discrete compounding when / 15% per year.
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The total annual equivalent expense for operating and maintaining the fumace is $thousands…
A rotational molding operation has fixed costs of $9,000 per year and variable costs of $54 per unit. If the process is automated via
conveyor, its fixed cost will be $61,000 per year, but its variable cost will be only $10 per unit. Determine the number of units each year
necessary for the two operations to break even.
The number of units each year necessary for the two operations to break even is determined to be [
A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year
starting one year from now (i.e., the first cash flow is $8,800 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to
increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is $396.75 at the EOY one). If the planning horizon is 15 years, what is
the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year.
Click the loon to view the interest and annuity table for discrete compounding when/= 10% per year.
Click the icon to view the interest and annuity table for discrete compounding when /= 15% per year.
Click the icon to view the interest and annuity table for discrete compounding when /= 18% per year.
The total annual equivalent expense for operating and maintaining the furnace is $
thousands.…
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