Engineering Economy (16th Edition) - Standalone book
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 2, Problem 47P
To determine

Whether the annual savings is more than offset cost.

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A company is considering a new manufacturing process. It knows that the rate of savings (in dollars per year) from the process will be about S(t)-3000(1+4) where t is the number of years the process has been in use. Find the total savings during the first year Find the total savings during the first 7 years The total savings during the first year is (Simplify your answer.)
Automobile repair shops typically recom- mend that their customers change their oil and oil filter every 4,000 miles. Your automobile user's manual suggests changing your oil every 6,500–8,500 miles. If drive you your car 52,000 miles each year and an oil and filter change costs $31, how much money would you save each year if you had this service performed every 6,500 miles?
Home heating accounts for approximately one-third of energy consumption in a typical U.S. household. Despite soaring prices of oil, coal, and natural gas, one can make his/her winter heating bill noninflationary by installing an ultra convenient corn burning stove that costs in the neighborhood of $2,400.That's right - a small radian theating stove that burns corn and adds practically nothing to global warming or air pollution can be obtained through www.magnumfireplace.com. Its estimated annual savings per household in fuel is $300 in a regular U.S. farming community. Do the annual savings more than offset the cost of installing and maintaining a corn-burning stove? What other factors besides dollars might influence your decision to use corn for your home heating requirements? Assume the problem setting is in Tennessee. Also assume that stove will be used for 11 years. Work this problem without considering the time value of money. The total savings during the useful life of the stove…
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