Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 14, Problem 3ST
a:
To determine
Assumption.
b:
To determine
Selection fo the project.
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Pls help me to solve below homework :
A Phellx Mining company is trying to decide whether it should purchase or lease a new mobile rusher. if purchased, the mobile crusher will cost $150,000 and is expected to have a $55,000 salvage value after 6 years. If the mobile crushed is purchased, It will be leased to mining companies whenever possible, an activity that is expected to yield revenues of $12,000 per year. Alternatively, the company con lease a mobile crusher for only $20,000 per year, but the lease payment will have to be made at the beginning of each year. If the company's MARK is 15% per year, should the mobile crusher be purchased or leased based on a future worth analysis? Assume that the annual lig&O awns. same.
For the production of part R-193, two operations are being considered. The capital investment associated with
each operation is identical.
Operation 1 produces 2,100 parts per hour. After each hour, the tooling must be adjusted by the machine
operator. This adjustment takes 15 minutes. The machine operator for Operation 1 is paid $24 per hour (this
includes fringe benefits).
Operation 2 produces 2,350 parts per hour, but the tooling needs to be adjusted by the operator only once
every two hours. This adjustment takes 45 minutes. The machine operator for Operation 2 is paid $13 per
hour (this includes fringe benefits).
Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.35 each.
a. Should Operation 1 or Operation 2 be recommended?
b. What is the basic tradeoff in this problem?
While studying for the engineering economy final exam, you and two friends find yourselves craving a fresh pizza. You can’t spare the time to pick up the pizza and must have it delivered. “Pizza Hut” offers a 1-1/4-inch-thick (including toppings), 20-inch square pizza with your choice of two toppings for $15 plus 5% sales tax and a $1.50 delivery charge (no sales tax on delivery charge). “Dominos” offers the round, deep-dish Sasquatch, which is 20 inches in diameter. It is 1-3/4 inches thick, includestwo toppings, and costs $17.25 plus 5% sales tax and free delivery.
a. What is the problem in this situation? Please state it in an explicit and precise manner.
b. Systematically apply the seven fundamental principles of engineering economy to the problem you have defined in Part (a).
Chapter 14 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10P
Ch. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Prob. 23PCh. 14 - Prob. 24PCh. 14 - Prob. 25PCh. 14 - Prob. 26PCh. 14 - Prob. 27PCh. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Prob. 36PCh. 14 - Prob. 37PCh. 14 - Prob. 38PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43PCh. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Prob. 49PCh. 14 - Prob. 1STCh. 14 - Prob. 2STCh. 14 - Prob. 3ST
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