Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 10P
a:
To determine
Calculate the capital recovery.
b:
To determine
Calculate the annual worth.
c:
To determine
Calculate the annual worth through spreadsheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
For the cash flows shown, determine the incremental cash flow between machines B
and A for (a) year 0, (b) in year 3, and (c) in year 6.
Machine
First cost, $
AOC, $ per year
Salvage value, $
Life, years
A
-15,000
-1,600
3.000
(a) =
= -10000 (b) = 13200 (c) =6000
(a) = -10000 (b) = -1800 (c) = 4200
3
(a) = -10000 (b) = 13200 (c) = 4200
(a) = -10000 (b) = -1800 (c) = 3000
B
-25,000
-400
6.000
6
Standby power for pumps at water distribution booster stations can be provided by either
gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows:
Gasoline
First cost, $
Annual M&O, $ per year
Salvage value, $
Life, years
- 150,000
-41,000
23,000
15
The incremental PW cash flow equation associated with (diesel – gasoline) is
0 = -40,000 + 11,000 (P/A, i, 15) + 16,000(P/F, i, 15)
Determine the following:
(a) First cost of the diesel engines
(b) Annual M&O cost of the diesel engines
(c) Salvage value of the diesel engines
Show your complete solution.
Chapter 5 Solutions
Basics Of Engineering Economy
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
Knowledge Booster
Similar questions
- Please correct answer and don't use hand ratingarrow_forwardAn environmental engineer wants to evaluate three different methods for disposing of nonhazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. Use the estimates below to help her determine which has the least cost at /= 13% per year on the basis of an annual worth evaluation. First Cost AOC per Year Salvage Value Life Land $-145.000 $-91,000 $23,000 4 years Incineration $-910,000 $-50,000 $310,000 6 years The environmental engineer selects a✔(Click to select) private disposal contract land application fluidized-bed incineration Contract. 0 $-132,000 0 2 yearsarrow_forwardVirgin Galactic is considering two materials for certain parts in a re-useable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below. Which should be selected on the basis of a present worth comparison at an interest rate of 10% per year? Solve using (a) tabulated factors, and (b) single-cell spreadsheet functions.arrow_forward
- 8arrow_forwardQUESTION 8 A professional photographer who specializes in wedding-related activities paid $46,500 for equipment that will have a $2000 salvage value after 5 years. He estimates that his costs associated with each event amount to $65 per day. If he charges $200 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year? The number of days required for break even, (in days per year) Round to the nearest three (3) decimal placesarrow_forwardonly typed solutionarrow_forward
- Machine D E First cost, $ −62,000 −77,000 AOC, $ per year −15,000 −21,000 Salvage value, $ 8,000 10,000 Life, years 4 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors.arrow_forwardChemCo Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproofanything. Over a 5 year period, the costs associated with the pilot test product line were as follows: first cost of $43,000 and annual costs of $18,000. Annual revenue was $40,000 and used equipment was salvaged for $4,000. What rate of return did the company make on the product?arrow_forwardQUESTION: To improve package tracking at a UPS transfer facility, conveyor equipment was upgraded with RFID sensors at a cost of $300 and has a useful life of 3 years. The operating cost is expected to be $150 per year. The salvage value of the equipment is expected to be $140 for the first 2 years, but due to obsolescence, it won't have a significant value after that. At an interest rate of 10% per year, (a) The economic service life of the equipment and associated annual worth (b) The percentage increase in the AW of cost if the equipment is retained 1 years longer than the ESL determinearrow_forward
- A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ −900,000 Equipment replacement cost in year 2, $ −300,000 Annual operating cost, $/year −950,000 Salvage value, $ 250,000 Life, years 4 At an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. The equivalent annual cost of the project is $− . Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardFaro laser trackers are portable contact measurement systems that use laser technology to measure large parts and machinery to accuracies of 0.0002inches across a wide range of industrial applications. A customer that manufactures and installs cell phone relay dishes and satellite receiving stations reported the cash flows (in $1000 units) for one of its product lines. (a) Determine the number of possible rate of return values. (b) Find all rate ofreturn values between 0 and 150%.arrow_forwardDon't Use Excel function. Need Handwritten /Typed based solution using formula. Please Solve as fast as.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education