Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 27FE
To determine
Calculated the incremental cost benefit ratio
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
#18
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?
Submit
Answer format: Currency: Round to: 0 decimal places.
Show Hint
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 (17th Edition)
Ch. 10 - Prob. 1PCh. 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 - Prob. 29FECh. 10 - Prob. 30FECh. 10 - Prob. 31FE
Knowledge Booster
Similar questions
- 32. A factory has production capacity of P12,000 units per month with an efficiency of 80% Fixed monthly operating cost = P600,000 Material and labor cost = P200/unit Selling price = P500.00 Determine the monthly profitarrow_forwardAns all.. otherwise don't ansarrow_forwardThe village has a hiking lodge whose visitors use the lake for recreation. The village also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the hiking lodge's economic profit. Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the hiking lodge would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $2,200 per week, and the hiking lodge's economic profit is $3,200 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $3,000 per week, and the hiking lodge's economic profit is $2,000 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish…arrow_forward
- 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 Barrow_forwardI want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.arrow_forwardIma Good-Student enrolls in ENGR 3202. She had considered purchasing a new vehicle but decides that she can buy a good used vehicle and invest the difference in the stock market. Ima sells her current vehicle for $5000 and buys a low-mileage vehicle for $15000 in cash, no financing needed. She also realizes that she needs to account for maintenance and operation costs. Those costs are estimated to be $2000 per year and increase by $100 per year. She will keep the vehicle for years and sell it for an estimated $3000. If her MARR is 8%, what is the present value of this cash flow? O a. $-23000 O b. $-23400 O c. $-18000 O d. -$18400arrow_forward
- Product X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 20% and fixed cost by 10% but sales will increase to 12,000 units per year. At what selling price do the break even occurs for the new design? (A) none of the above B 7.64 D 10.12 9.38arrow_forwardSUBJECT: ENGINEERING ECONOMICS PLEASE PROVIDE A COMPLETE SOLUTION TO THIS QUESTION. THE FINAL ANSWER IS ALREADY GIVEN. THANK YOUarrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Give typing answer with explanation and conclusionarrow_forwardAn electric utility company is considering a re-engineering of a major hydroelectric facility. The project would yield greater capacity and lower cost per kilowatt-hour of power. As a result of the project, the price of power would be reduced. This is expected to increase the quantity of power demanded. The following data are available Effect of Reduced Price of Power 0.08 10,000,000 0.07 14,000,000 Current price ($/kWh) Current consumption (kWh/year) New price ($/kWh) Expected consumption (kWh/year) What is the annual benefit to consumers of power from this project? The annual benefit is $arrow_forwardShow your complete solution.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education