Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 5, Problem 17P
a:
To determine
Calculate the annual worth.
b:
To determine
Calculate the new annual worth through spreadsheet.
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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
Handheld fiber-optic meters with white light polarization interferometry are useful for measuring
temperature, pressure, and strain in electrically noisy environments. The fixed costs associated
with manufacturing are $800,000 per year. If a base unit sells for $2950 and its variable cost is
$2075,
(a ) how many units must be sold each year for breakeven?
(b ) what will the profit be for sales of 3000 units per year?
1. The annual worth for years 1 through infinity of $75,000 now, $25,000 per year in years 1 through 15 and
S40,000 per year in years 16 through infinity at a 10% interest per year is closest to:
(a) $27,500
(b) $36,000 (c) $44,000 (d) $ 19,500
1. For the estimates in table below, calculate the equivalent annual cost of the project:
First Cost, $
-950,000
Replacement Cost, year 2
AOC, $/ year
Salvage value, $
-450,000
-600,000
175,000
Life, years
4
Interst Rate %
10
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
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