
(a)
The speed that needs to be chosen for cost-effective journey.

Answer to Problem 60P
The speed that needs to be chosen for cost-effective journey is 70mph.
Explanation of Solution
Given information:
- Mileage at 60 mph − 24mpg
- Mileage at 70 mph − 20mpg
- Distance trip − 500 miles
- Gas cost - $3 per gallon
- Time worth - $18 per hour
We will have to find the best alternative which will have very loss cost bearing. The cost from both the speed alternatives shall be evaluated.
Calculation
- 60mph
At Mileage 60mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 20.83 gallons required, and the cost of these gallons (CoG) at the
Now, we find the time required for driving 500 miles at 60mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time (CoT), with the Price (P) being 18 per hour
Therefore, the total cost of the journey(CoJ) at 60 mph will be:
- 70mph
At Mileage 70mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 25 gallons required, and the cost of these gallons (CoG) at the price (P) at $3 will be:
Now, we find the time required for driving 500 miles at 70mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time(CoT), with the Price (P) being 18 per hour
Therefore, the total cost of the journey(CoJ) at 70 mph will be:
Conclusion:
The Cost of Journey at 60mph is $212.43 and 70 mph is $203.52. Therefore, 70mph should be chosen.
(b)
The speed that needs to be chosen for cost-effective journey.

Answer to Problem 60P
The speed that needs to be chosen for cost-effective journey is 60mph.
Explanation of Solution
Given information:
- Mileage at 60 mph − 24mpg
- Mileage at 70 mph − 20mpg
- Distance trip − 500 miles
- Gas cost - $4 per gallon
- Time worth - $12 per hour
We will have to find the best alternative which will have very loss cost bearing. The cost from both the speed alternatives shall be evaluated.
Calculation
- 60mph
At Mileage 60mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 20.83 gallons required, and the cost of these gallons (CoG) at the price (P) at $4 will be:
Now, we find the time required for driving 500 miles at 60mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time(CoT), with the Price (P) being 12 per hour
Therefore, the total cost of the journey(CoJ) at 60 mph will be:
- 70mph
At Mileage 70mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 25 gallons required, and the cost of these gallons (CoG) at the price (P) at $4 will be:
Now, we find the time required for driving 500 miles at 70mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time(CoT), with the Price (P) being 12 per hour
Therefore, the total cost of the journey(CoJ) at 70 mph will be:
Conclusion:
The Cost of Journey at 60mph is $183.28and 70 mph is $185.68. Therefore, 60mph should be chosen.
(c)
The speed that needs to be chosen for cost-effective journey.

Answer to Problem 60P
The speed that needs to be chosen for cost-effective journey is 60mph.
Explanation of Solution
Given information:
- Mileage at 60 mph − 24mpg
- Mileage at 70 mph − 20mpg
- Distance trip − 500 miles
- Gas cost - $5 per gallon
- Time worth - $9 per hour
We will have to find the best alternative which will have very loss cost bearing. The cost from both the speed alternatives shall be evaluated.
Calculation
- 60mph
At Mileage 60mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 20.83 gallons required, and the cost of these gallons (CoG) at the price (P) at $5 will be:
Now, we find the time required for driving 500 miles at 60mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time(CoT), with the Price (P) being 9 per hour
Therefore, the total cost of the journey(CoJ) at 60 mph will be:
- 70mph
At Mileage 70mph, the number of gallons (NoG) will be:
wherein: Miles − Distance to be covered | Mileage − The distance covered in one gallon
So, 25 gallons required, and the cost of these gallons (CoG) at the price (P) at $5 will be:
Now, we find the time required for driving 500 miles at 70mph
wherein: Miles − Distance to be covered | Speed − Speed for driving the car
So, 8.33 hours will be required to cover the 500-miles distance, the cost of time(CoT), with the Price (P) being 9 per hour
Therefore, the total cost of the journey(CoJ) at 70 mph will be:
Conclusion:
The Cost of Journey at 60mph is $179.12and 70 mph is $189.26. Therefore, 60mph should be chosen.
(d)
The speed that needs to be chosen for cost-effective journey.

Answer to Problem 60P
Build in the spreadsheet.
Explanation of Solution
Given information:
- Mileage at 60 mph − 24 mpg
- Mileage at 70 mph − 20 mpg
- Distance trip − 500 miles
- We will have to find the best alternative which will have very loss cost bearing. The cost from both the speed alternatives shall be evaluated.
Calculation:
- 60 mph
Distance to be covered | Speed | Mileage | NoG | Price | CoG | Time | Price | CoT | CoJ |
500 | 60 | 24 | 20.83 | 2 | 41.67 | 8.33 | 6 | 50.00 | 91.67 |
500 | 60 | 24 | 20.83 | 3 | 62.50 | 8.33 | 6 | 50.00 | 112.50 |
500 | 60 | 24 | 20.83 | 4 | 83.33 | 8.33 | 6 | 50.00 | 133.33 |
500 | 60 | 24 | 20.83 | 5 | 104.17 | 8.33 | 6 | 50.00 | 154.17 |
500 | 60 | 24 | 20.83 | 2 | 41.67 | 8.33 | 9 | 75.00 | 116.67 |
500 | 60 | 24 | 20.83 | 3 | 62.50 | 8.33 | 9 | 75.00 | 137.50 |
500 | 60 | 24 | 20.83 | 4 | 83.33 | 8.33 | 9 | 75.00 | 158.33 |
500 | 60 | 24 | 20.83 | 5 | 104.17 | 8.33 | 9 | 75.00 | 179.17 |
500 | 60 | 24 | 20.83 | 2 | 41.67 | 8.33 | 12 | 100.00 | 141.67 |
500 | 60 | 24 | 20.83 | 3 | 62.50 | 8.33 | 12 | 100.00 | 162.50 |
500 | 60 | 24 | 20.83 | 4 | 83.33 | 8.33 | 12 | 100.00 | 183.33 |
500 | 60 | 24 | 20.83 | 5 | 104.17 | 8.33 | 12 | 100.00 | 204.17 |
500 | 60 | 24 | 20.83 | 2 | 41.67 | 8.33 | 15 | 125.00 | 166.67 |
500 | 60 | 24 | 20.83 | 3 | 62.50 | 8.33 | 15 | 125.00 | 187.50 |
500 | 60 | 24 | 20.83 | 4 | 83.33 | 8.33 | 15 | 125.00 | 208.33 |
500 | 60 | 24 | 20.83 | 5 | 104.17 | 8.33 | 15 | 125.00 | 229.17 |
500 | 60 | 24 | 20.83 | 2 | 41.67 | 8.33 | 18 | 150.00 | 191.67 |
500 | 60 | 24 | 20.83 | 3 | 62.50 | 8.33 | 18 | 150.00 | 212.50 |
500 | 60 | 24 | 20.83 | 4 | 83.33 | 8.33 | 18 | 150.00 | 233.33 |
500 | 60 | 24 | 20.83 | 5 | 104.17 | 8.33 | 18 | 150.00 | 254.17 |
- 70 mph
Distance to be covered | Speed | Mileage | NoG | Price | CoG | Time | Price | CoT | CoJ |
500 | 70 | 20 | 20.83 | 2 | 41.67 | 7.14 | 6 | 42.86 | 84.52 |
500 | 70 | 20 | 20.83 | 3 | 62.50 | 7.14 | 6 | 42.86 | 105.36 |
500 | 70 | 20 | 20.83 | 4 | 83.33 | 7.14 | 6 | 42.86 | 126.19 |
500 | 70 | 20 | 20.83 | 5 | 104.17 | 7.14 | 6 | 42.86 | 147.02 |
500 | 70 | 20 | 20.83 | 2 | 41.67 | 7.14 | 9 | 64.29 | 105.95 |
500 | 70 | 20 | 20.83 | 3 | 62.50 | 7.14 | 9 | 64.29 | 126.79 |
500 | 70 | 20 | 20.83 | 4 | 83.33 | 7.14 | 9 | 64.29 | 147.62 |
500 | 70 | 20 | 20.83 | 5 | 104.17 | 7.14 | 9 | 64.29 | 168.45 |
500 | 70 | 20 | 20.83 | 2 | 41.67 | 7.14 | 12 | 85.71 | 127.38 |
500 | 70 | 20 | 20.83 | 3 | 62.50 | 7.14 | 12 | 85.71 | 148.21 |
500 | 70 | 20 | 20.83 | 4 | 83.33 | 7.14 | 12 | 85.71 | 169.05 |
500 | 70 | 20 | 20.83 | 5 | 104.17 | 7.14 | 12 | 85.71 | 189.88 |
500 | 70 | 20 | 20.83 | 2 | 41.67 | 7.14 | 15 | 107.14 | 148.81 |
500 | 70 | 20 | 20.83 | 3 | 62.50 | 7.14 | 15 | 107.14 | 169.64 |
500 | 70 | 20 | 20.83 | 4 | 83.33 | 7.14 | 15 | 107.14 | 190.48 |
500 | 70 | 20 | 20.83 | 5 | 104.17 | 7.14 | 15 | 107.14 | 211.31 |
500 | 70 | 20 | 20.83 | 2 | 41.67 | 7.14 | 18 | 128.57 | 170.24 |
500 | 70 | 20 | 20.83 | 3 | 62.50 | 7.14 | 18 | 128.57 | 191.07 |
500 | 70 | 20 | 20.83 | 4 | 83.33 | 7.14 | 18 | 128.57 | 211.90 |
500 | 70 | 20 | 20.83 | 5 | 104.17 | 7.14 | 18 | 128.57 | 232.74 |
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Chapter 1 Solutions
Engineering Economic Analysis
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