Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 3P
To determine
Calculate the breakeven miles.
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A distribution company is considering three different alternatives to satisfy
their customer's demands. Their options are to rent a ready distribution center
(D01), Rent and mobilize a center (D02), or outsourcing (OS). The estimate for
each method is shown. The lifetime for D01, D02, and OS are 3, 6, and 2
respectively. MARR is 0.04 per year, and the percentage of change for all of the
cases are 0 %
Note: all units are in thousand $
D01
First Cost, $
Annual Operation Cost, $
Salvage Value, $
a: Calculate the Fw of D01?
-136
-92
28
D02 OS
-973 0
-59 -123
333 0
It is estimated that an investment alternative with an
initial investment cost of 150000 TL will generate
annual revenues of 85000 TL and annual expenses of
20000 TL. It is expected to have a scrap value of 95000
TL at the end of its 5-year life. Find out how sensitive
the investment decision of this investment alternative
is to its revenues. (MARR: %10)
Two electric motors are being economically evaluated for the use in unmanned vehicle. Each is capable of delivering 90 horsepower to a necessary application that the vehicle performs. Data for the mutually exclusive motors as follows:
If the expected usage of the motor is 700 hours per year, what would the cost of electric power have to be (in $ per kWh) before the Motor Y is favored over the Motor X? Use i =10% per year. (1 horsepower = 0.746 kilowatts)
Chapter 11 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - You have decided to purchase a new automobile with...Ch. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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