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 65APQ
To determine

Calculate the present worth.

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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?
The proprietor of a little store plans on buying $1,500 worth of products to be increased 40% dependent on the selling cost. Of this he will have bought $200 worth of "floor merchandise", which will sell for $250. In case he is to keep up with the wanted 40% markup on the all out buy, what markup % is required on the equilibrium of the buys?
The local bank pays 4% interest on savings deposits. In a nearby town, the bank pays 1% per quarter. A man who has $3000 to deposit wonders whether the higher interest paid in the nearby town justifies driving there What sum of money now is equivalent to $8250 two years hence, if interest is 4% per 6-month period? The answer is closest to: Hint : 4% per 6 month means semi annual periods so the n does not equal 2 anymore ! $8,923 $7,052 $8,580 $9,651

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Basics Of Engineering Economy

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