Engineering Economy, Student Value Edition (17th Edition)
Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 10, Problem 31FE
To determine

Calculated the Incremental benefit cost ratio.

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Q#1) Select the most economical among the following mutually exclusive alternatives using PW and AW methods of analysis at interest rate of 10% per year: First cost ($) Annual Operating Cost ($/year) Major repair ($) Life (years) Salvage ($) Machine A 20,000 5,000 for the first year and increases by 1,000 each year none 10 2,000 Machine B 50,000 2,000 per year up to year 10 and 5,000 per year thereafter 5,000 every 5 years including at year 40 40 5,000 Q#2) Find the Rate of Return for machines A and B in question #1 if the annual revenues for each machine is estimated at $20,000 per year.
A gold mining area in Lanao contains on average, 1 ounce of gold per ton. Two methods of processing are available; method A costs P1.5M per ton and recovers 90% of gold; method B costs P1.3M per ton and recovers 80% of the gold. If gold can be sold for P2.4M per ounce , which method is better and by how much?
Could you please tell me answer to this question, a circled or highlighted answer would be appreciated, thank you.
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