Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 10, Problem 25P
To determine

Calculated the new incremental cost benefit ratio

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The Industrial Engineering at Shocker Communications has devised one alternative method involving new tooling for a job being machined in the shop. Data on the present and proposed method are shown in the table below. What production quantity would be required for the alternative method to be more economical? Assume the base pay rate is $10.0 per hour. The estimated production quantity is 15040 per year. The fixtures are capitalized and depreciated in 4 years. Round your answer to the closest integer. Method Standard Time (min) Fixture Cost Tool Cost Average Tool Life Present 10,000 0.856 0 $6 Method pieces 32845 Alternative 0.791 $930 $20 pieces
Question 10: Two alternatives are being considered as shown below. Based on an MARR of 7%, and an 8- year analysis period, select the best alternative. Assume identical replacement. A в Initial Cost (9,200) (5,000) Uniform Annual Benefit Useful Life Analysis Period 1,850 1,750 8 4 8
Car A initially costs 500 more than car B. but it consumes 0.04 gallon/mile versus 0.05 gallon/mile for B. Both vehicles last 8 years, and B's Salvage value S 100 smaller than A's. Fuel costs S 1.7 per gallon. Other things being equal. beyond how many miles of use per year does car A become preferable to car B
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