
(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 price (P) at $3 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 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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