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 53P
To determine

Calculate the capitalized cost.

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A factory installs new machinery that saves S(x) = 1800 dollars per year. y $ per year 1800 savings S=1800- 80 x net savings cost C = 100 x Year 80x dollars per year, where x is the number of years since installation. However, the cost of maintaining the new machinery is C(x) : = 100x X (a) Find the year x at which the maintenance cost C(x) will equal the savings S(x). (At this time, the new machinery should be replaced. Round your answer to the nearest whole number.) X = years (b) Find the accumulated net savings (in dollars) [savings S(x) minus cost C(x)] during the period from t = 0 to the replacement time found in part (a). (Round your answer to the nearest whole number.)
A manufacturer buys certain equipment form suppliers at $30 per unit. Total requirement is 200 units/ quarter.  Ineventory carrying cost is 10% /year. Cost of placing an order is $100. Rent, insurance, storing per unit per year $3. SOLVE for the following: EOQ=? N=? T=? (in months) Total cost If 1300 is the current order quantity, how much would they save by switching to the EOQ?
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Basics Of Engineering Economy

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