Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 10, Problem 27FE
To determine
Calculated the incremental cost benefit ratio
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A Restaurant is open only for 25 days in a month.
Expenses for the restaurant include raw material for each sandwich at $6.00 per slice, $1,192.00 as monthly rental and
$278.00 monthly as insurance. They consider the cost of lost sales as $5.00 per item. They are able to sell any leftover
sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $13.00/sandwich.
Today there was a party at nearby office so the demand for sandwiches rose to 210.00. How much profit did the
restaurant earn today?
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You are considering an investment project with the financial information provided below. Suppose the company is most concerned about the impact of its price estimate on the project's rate of return. How would you address this concern?
The break-even value of unit price is ?
You have been asked to perform an economic evaluation of two projects and recommend one of
them for implementation. The project parameters are as follows:
Project A
Project B
Discount
Rate
4.0%
4.0%
Your analysis concludes that:
Project Cost
$1,000,000
$750,000
Project Life
(yrs)
10
15
Elec. Savings Elec. Cost
(kWh/yr)
($/kWh)
800,000
600,000
O Project A is preferable, but Project B also has attractive performance.
O Project B is preferable, but Project A also has attractive performance.
O Project B is preferable and Project A results in a net loss.
O Project A is preferable and Project B results in a net loss.
$0.12
$0.12
Annual Cost
Escalation Rate
1.5%
1.5%
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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