Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 9, Problem 33FE
To determine
Calculate the value of repair cost.
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You are considering buying a 10-year-old machine for $280, or a new fuel-efficient machine for$600. The new machine will save you $5 per month on your fuel bill, and you will be able to sellit for $300 in 10 years. The used machine will have no resale value at that time. Assume theinterest rate is 3% per year. According to the information given, which machine will you buy?
A company is considering buying a new piece of equipment for $40,000. It is expected
to save $12,000 per year for the next 10 years and have a salvage value of $2,000 at
the end of 10 years. The machine will require a one-time rehab for $10,000 after 5
years. If the MARR is 10% per year compounded yearly, should the company by the
machine?
6.33 Liquid Sleeve, Inc. is a company that makes a
sealing solution for machine shaft surfaces that
have been compromised by abrasion, high pres-
sures, or inadequate lubrication. The manager is
considering adding a metal-based nanoparticle
(Type Al or Fe) to its solution to increase the prod-
uct's performance at high temperatures. The costs
associated with each type are estimated. If the
company's MARR is 20% per year, which nanopar-
ticle type should the company select? Utilize a rate
of return analysis.
Туре Fe
Туре Al
First cost, $
- 150,000
-280,000
Annual operating cost,
S/year
-92,000
-74,000
Salvage value, $
30,000
70,000
Life, years
2
4
Chapter 9 Solutions
Engineering Economy (17th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - A city water and waste-water department has a...Ch. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Use the PW method to select the better of the...Ch. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27SECh. 9 - Prob. 28SECh. 9 - Prob. 29CSCh. 9 - Prob. 30CSCh. 9 - Prob. 31CSCh. 9 - Prob. 32FECh. 9 - Prob. 33FECh. 9 - Prob. 34FECh. 9 - Prob. 35FECh. 9 - Prob. 36FE
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