Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 38P

The manager of engineering at the 900-megawatt Hamilton Nuclear Power Plant has three options to supply personal safety equipment to employees. Two are vendors who sell the items, and the third alternative is to rent the equipment for $50,000 per year, but for no more than 3 years per contract. These items have relatively short lives due to constant use. The MARR is 10% per year.

Chapter 4, Problem 38P, The manager of engineering at the 900-megawatt Hamilton Nuclear Power Plant has three options to

  1. a. Select from the two vendors using the LCM and PW analysis.
  2. b. Determine which of the three options is cheaper over a study period of 3 years.
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← An oil refinery finds that it is necessary to treat the waste liquids from a new process before discharging them into a stream. The treatment will cost $40,000 the first year, but process improvements will allow the costs to decline by $4,000 each year. As an alternative, an outside company will process the wastes for the fixed price of $20,000/year throughout the 8 year period, payable at the beginning of each year. Either way, there is no need to treat the wastes after 8 years. Use the annual worth method to determine how the wastes should be processed. The company's MARR is 13%. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. www

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Basics Of Engineering Economy

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