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
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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
Chapter 10 Solutions
Engineering Economy
Ch. 10 - The Adams Construction Company is bidding on a...Ch. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Four mutually exclusive projects are being...Ch. 10 - Two municipal cell tower designs are being...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - You have been requested to recommend one of the...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26FECh. 10 - Prob. 27FECh. 10 - Prob. 28FECh. 10 - A flood control project with a life of 16 years...Ch. 10 - Prob. 30FECh. 10 - Prob. 31FE
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- A construction company has to sell at least 30 and 50 from type of equipment E1 and E2. respectively. The company has 270 hours monthly workmanship totally. E1 requires 1 hours workmanship and E2 does 3 hours. The benefits from E1 and E2 are 200 and 300 TL respectively. Find the economic numbers for E1 and E2 for the maximum benefit.arrow_forwardCar A costs $800 more than Car B, but it consumes 0.035 gallons/mile versus 0.06 gallons/mile for Car B. Both vehicles last 10 years and B's salvage value is $175 smaller than A's. Fuel costs $2.30/gallon. Other things being equal, beyond how many miles of use per year (x) does A become preferable to B?arrow_forwardPlease explain,arrow_forward
- USAA is considering adding a new runway and has 3 options for the runway surface: asphalt, concrete, and a mixture of both. The benefit from all 3 alternatives is the same. Therefore, these projects are cost-based alternatives, and the cash flows are provided in the table below. Using conventional benefit/cost ratio with MARR of 9%, which alternative should be selected? First cost AW of resurfacing cost Asphalt Concrete Mixture $250,000,000 $350,000,000 $400,000,000 $30,000,000 $20,000,000 $10,000,000 Disbenefits at construction time $5,000,000 Life, years Asphalt is better Concrete is better The Mixture is better 20 $10,000,000 20 $12,000,000 20arrow_forwardCompare the defender and challenger based on the opportunity-cost?arrow_forwardCalculate the conventional benefit-cost ratio for the alternative: Initial Investment 250000 Revenues 80000 Costs 22000 Salvage Value 50000 Useful life 9 MARR 0.1.arrow_forward
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