Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Textbook Question
Chapter 3, Problem 8P
Prepare a composite (weighted) index for housing construction costs in 2014, using the following data: (3.3)
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Question 1
Cost of a stainless vessel in year 2002 was $33,000. Estimate its cost in year 2016 by using CEPCI data.
CEPCI of year 2002 = 395.6; CEPCI of year 2016 = 541.7
Answer
George Kyparisis makes bowling bals in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in
determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He
has the following data representing a month from last year and an equivalent month this year:
Last Year
Cost Per Input Unit
Now
Units Produced
Labor (hours)
Resin (pounds)
Capital Invested ($)
Energy (BTU)
1,000
1,000
280
255
$10 per hour
$6 per pound
1% per month
$0.50 per BTU
48
43
9,000
10,000
3,000
2,850
The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator =% (enter
your response as a percentage rounded to two decimal places).
What is the definition of the internal rate of return (IRR) (it is efficient to write down the formula)? What are the given information and what is the unknown variable?
Chapter 3 Solutions
Engineering Economy
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - A biotech firm is considering abandoning its old...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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