Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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To make an item inhouse, equipement costing $245,000 must be purchased. It will
have a life of 4 years, an annual cost of $78,000, and each unit will cost $65 to
manufacture. Buying the item externally will cost $100 per unit. At i = 15% per year,
it is cheaper to make the item inhouse if the number produced per year is above
units.
Handheld fiber optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If variable costs are $290 per unit and the company sells 4000 units per year, at what selling price per unit will the company break even?
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- The following data for X and Y are in format [XY]. First cost in $: [-80,000,-95,000], Annual cost in $: [-20,000, -15,000], Salvage value in $: [10,000, 30,000], $ Life in years [2,4]. The interest rate is 10% per year. The equation that will calculate the present worth of machine X is: Select one: a. b. O c. PWX = -80,000 - 20,000(P/A, 10%,2) + 10,000(P/F,10%,2) PWX = -80,000 - 15,000(P/A, 10%,4) + 30,000[P/F,10%,4) PWX = -80,000 - 20,000(P/A,10%,4) - 70,000[P/F,10%,2) + 10,000(P/F,10%,4) O d. PWX = -80,000 - 20,000(P/A, 10%,4) - 80,000(P/F,10%,2) + 10,000 (P/F,10%,4)arrow_forwardThe Uniqlo, a retail company, sells a product at P400 per unit, selling all that is produced. Fixed cost is P250,000 and variable cost per unit is P200.arrow_forwardA company produces a certain commodity. The labor and material cost for each item produced is P65. Other variable cost is P28 per unit. The fixed monthly cost is P440,000. If each item is to be sold at P170 determine the number of units that must be produced per month in order to break-evenarrow_forward
- Hi expert please answer both the parts will upvote. Hand written solution is not allowed.arrow_forwardThe powerfull expert Hand written solution is not allowedarrow_forwardPlease no written by hand solutions One area of concern when it comes to Starlink is the cost. For example, at the beginning of February 2023, FiberOne, a broadband internet provider in Nigeria, was providing internet with speeds of up to 500Mbps, which is fast. The installation fee was N32,231 (about US$70) and the monthly subscription cost around N100,000 (US$220). Starlink in Nigeria, meanwhile, costs about N276,000 (US$599) once- off for the kit and installation, then charges a monthly subscription fee of about [N19,800] (US$43). Starlink is cheaper in the long term than both fibre optic and mobile internet providers. But can an average rural Nigerian household with a monthly income of less than N28,000 (US$60) afford it? Given that average incomes are similarly low in most rural and remote parts of Africa, there's a risk that Starlink's targeted users on the continent won't be able to use the service. The reason that Starlink is able to charge a lower monthly price for their…arrow_forward
- The super Expert Hand written solution is not allowedarrow_forwardAn item with a holding cost of $400 per year can be shipped by air in 1 day, costing $250, or by ground in 5 days, costing $150. Assuming the holding costs of $400 per year are based on an operational year of 365 days, which is cheaper and by how much?arrow_forwardplz solve both parts within 30-40 mins I'll give you multiple upvotearrow_forward
- The minimum cost life of a new replacement machine is 6 years with a minimum equivalent annual cost of $6000. Given the existing machine’s marginal cost data for the next 4 years, when should the existing machine be replaced? (a) After Year 1 (b) After Year 2 (c) After Year 3 (d) After 6 yearsarrow_forwardSince many U.S. Navy aircraft are at or near their usual retirement age of 30 years, military officials want a precise system to assess when aircraft should be taken out of service. A computational method developed at Carnegie Mellon maps in 3-D the microstructure of aircraft materials in their present state so that engineers can test them under different conditions of moisture, salt, dirt, etc. Military officials can then determine if an aircraft is fine, is in need of overhaul, or should be retired. If the 3-D system allows the Navy to use one airplane 2 years longer than it normally would have been used, thereby delaying the purchase of a $20 million aircraft for 2 years, what is the present worth of the assessment system at an interest rate of 8% per year?arrow_forwardThe hero pro expert Hand written solution is not allowed pleasearrow_forward
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