The purchase cost of an excavating machine is $200,750. After a useful life of 6 years, it is assumed the equipment will be sold for $45,000. Assume interest of 9.5% for borrowing money and 3.2% for taxes, insurance and storage. Using the sinking fund depreciation method, calculate the annual ownership cost in Year 2 and the cost per hour in Year 1, assuming the equipment will be used for 2000 hr/year.

Q: 6.34 A tunnel cost $280M. Every 10 years, it is repaved at a cost of $12M. Halfway between the…

A: Given data - Tunnel cost = $280M Cost of repavement in every 10 years = $12M For 20 years rewired…

Q: Cost of machine = P 1.4 MUseful life = 8 yearsSalvage value = P10, 000Determine the 4thyear…

A:

Q: A man deposited (in the bank) 500,000 ID at the end of each month for four years with 10% interest…

A: Given data P=500,000ID n=15years Salvage value, F=2.5M Maintenance cost, M=250,000ID i=10%

Q: Using declining-balance depreciation with d = 18 percent, what is the depreciation charge in the 9…

A: Initial cost = $156400  Depreciation, d= 18 percent

Q: Please show all cash flow diagrams and math calculations

A: Answer image:Given thatInterest rate i = 12%-Alternative AAlternative BFirst…

Q: Please show all cash flow diagrams and math calculations

A: First cost82000    Salvage value15000   Depreciable value    First cost - Salvage value67000…

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.