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6.31 The manager of Liquid Sleeve, Inc., a company makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication, is considering add- ing Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. a. Determine which nanoparticle type the com- pany should select using an incremental rate of return analysis. Solve nart (a) using a spreadsheet and on the

6.31 The manager of Liquid Sleeve, Inc., a company makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication, is considering add- ing Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. a. Determine which nanoparticle type the com- pany should select using an incremental rate of return analysis. Solve nart (a) using a spreadsheet and on the

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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stall and $70,000 per year to maintain. which design should be selected based on a rate of return analysis if TXDOT uses a MARR of 6% per year and a 20-year project period. 6.31 The manager of Liquid Sleeve, Inc.., a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication, is considering add- ing Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. a. Determine which nanoparticle type the com- pany should select using an incremental rate of return analysis. b. Solve part (a) using a spreadsheet and, on the same worksheet, plot the PW versus different i values for each alternative. Indicate the break- ream dealt 0,000 creen and ,000 I will e old ce, so year. of the on, a ре- turn, omi- erify heet ative oho even i* value and the MARR value on the plot. c. Plot PW versus Ai values and use it to select ture, Il as the better alternative with MARR = 20% per ment year. Is the answer the same as in part (a)? os de ased. hase their 1e000Type Fe Туре Al First cost, $ -150,000 -280,000 Annual operating in- cost, $ per year -92,000 -74,000 two Salvage value, $ Life, years 30,000 70,000 uip- Note 2 4.
Transcribed Image Text:stall and $70,000 per year to maintain. which design should be selected based on a rate of return analysis if TXDOT uses a MARR of 6% per year and a 20-year project period. 6.31 The manager of Liquid Sleeve, Inc.., a company that makes a sealing solution for machine shaft surfaces that have been compromised by abrasion, high pres- sures, or inadequate lubrication, is considering add- ing Al or Fe nanoparticles to its solution to increase the product's performance at high temperatures. The costs associated with each are shown below. The company's MARR is 20% per year. a. Determine which nanoparticle type the com- pany should select using an incremental rate of return analysis. b. Solve part (a) using a spreadsheet and, on the same worksheet, plot the PW versus different i values for each alternative. Indicate the break- ream dealt 0,000 creen and ,000 I will e old ce, so year. of the on, a ре- turn, omi- erify heet ative oho even i* value and the MARR value on the plot. c. Plot PW versus Ai values and use it to select ture, Il as the better alternative with MARR = 20% per ment year. Is the answer the same as in part (a)? os de ased. hase their 1e000Type Fe Туре Al First cost, $ -150,000 -280,000 Annual operating in- cost, $ per year -92,000 -74,000 two Salvage value, $ Life, years 30,000 70,000 uip- Note 2 4.
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