Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
Chapter 8, Problem 31P
To determine
Calculate the equivalent annual worth.
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A company has invested in machinery that $23,000 to purchase and install and
the company purchased a 3 year warranty for $5,000. The warranty covers all
maintenance and repairs for three years with no cost to the company. At year 4,
the maintenance costs are estimated at $2,000 and will increase by $1,200 per
year after that. Operating costs are expected to be $800 every year. The
machinery will last nine years. If the interest rate is 6%, what is the machinery's
economic life that minimizes the EUAC?
what is the EUAC corresponding to an overhaul cost of 4000 at year 3 for a machine with 7 years of useful life? use i=8%
Milwaukee Machine Tool is planning to buy a
machine for S15,000 with a salvage value of 20% of
the initial cost after a life of 10 years. The company
estimates it will need $900 for supplies, $250 for
maintenance, $100 for utilities and S1,500 for
overhead. They estimate these will increase by S1200,
8%, 10% and $200 respectively over the 10-year
machine life. If interest rate is 5% per year, what is the
net present value of the project?
-$78,301.03
2 -$82,216.08
3 -$93,301.03
-$52,216.08
Chapter 8 Solutions
Engineering Economy
Ch. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10P
Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - A commercial building design cost 89/square-foot...Ch. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Prob. 39PCh. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 42PCh. 8 - Prob. 43PCh. 8 - Prob. 44PCh. 8 - Prob. 45PCh. 8 - Prob. 46PCh. 8 - Prob. 47PCh. 8 - Prob. 48PCh. 8 - Prob. 49SECh. 8 - Prob. 50SECh. 8 - Prob. 51SECh. 8 - Prob. 52CSCh. 8 - Suppose the cost of electricity is expected to...Ch. 8 - Prob. 54CSCh. 8 - Prob. 55FECh. 8 - Prob. 56FECh. 8 - Prob. 57FECh. 8 - Prob. 58FECh. 8 - Prob. 59FECh. 8 - Prob. 60FECh. 8 - Prob. 61FE
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