ENGINEERING ECONOMIC ENHANCED EBOOK
ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 9, Problem 73P

(a)

To determine

To calculate:The no. of years the treated part last to be the preferred alternative if installed cost of corrosion treated part is $400

(b)

To determine

To calculate: The no. of years the treated part last to be the preferred alternative if untreated part last only for 4 years.

(c)

To determine

To calculate:The no. of years the treated part last to be the preferred alternative if MARR is 12%.

(d)

To determine

To calculate: The no. of years the treated part last to be the preferred alternative if sub part (a), (b) and (c) happen simultaneously.

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Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
Problem 13 The Keiser Mining Company must deposit money in an account TODAY (n=0) to cover the anticipated cleanup costs that will begin when the mine closes. These cleanup costs of $6000 will begin in year 5 and repeat every 2 years, as shown below. The account will pay 5% annual interest. $6 $6 $6 $in thousands of 5 - ST 10 11 = The amount Keiser Mining Company should deposit TODAY is closest to: a. $45,900 b. $48,200 c. $50,600 d. $58,500
Which equation below gives at10% interest the total EUAC of an asset with an initial cost of $30,000, an estimated salvage value of $12,000 after its 7 -year service lile a, O&M costs of $25,000 per year? EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(A/F,1006,7)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+($12,000)(0.10)+$25,000(A/F,10%,7) EUAC=($30,000−12,000)(A/R,10%,7)+($12,000)(0.10)+$25,000 EUAC=($30,000−12,000)(A/P,10%,7)+$25,000

Chapter 9 Solutions

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