Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
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
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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- An aerodynamic three-wheeled automobile (the Dart) runs on compressed natural gas stored in two cylinders in the rear of the vehicle. The $13,000 Dart can cruise at speeds up to 85 miles per hour, and it can travel 90 miles per gallon of fuel. Another two-seater automobile costs $12,000 and averages 50 miles per gallon of compressed natural gas. If fuel costs $8.00 per gallon and MARR is 10% per year, over what range of annual miles driven is the Dart more economical? Assume a useful life of six years for both cars. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. ... Dart is more economical if you are planning on driving more per year. (Round to the nearest whole number.) miles orarrow_forwardA supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread. Neither machine has a market value at the end of seven years, and MARR is 12% per year. Use this information to answer (Select the closest answer), What is the minimum number of loaves that must be sold per year to justify installingMachine A instead of buying the loaves from the supplier? (a) 7,506 (b) 22,076 (c) 37,529 (d) 75,059 (e) 15,637.arrow_forwardA recent graduate who wants to start an excavation/earth-moving business is trying todetermine which size of used dump truck to buy. As the bed size increases, new incomeincreases; however, the graduate is uncertain whether the incremental expenditure requiredfor larger truck is justified. The cash flows associated with each size truck are estimated below.The contractor has established a MARR of 18% per year, and all trucks are expected to have aremaining economic life of 5 years. Using a Do Nothing (DN) option, using SPREADSHEET only,a. Determine which size truck should be purchased.b. If two trucks are to be purchased, what should be size of the second truck?arrow_forward
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