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 23P
a:
To determine
Calculate the annual cost.
b:
To determine
Calculate the annual cost through Calculator function.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 15. At an interest rate of 0.05 per year, the present worth of the maintenance cost is nearest to
Las Cruces' Virgin Galactic is considering two materials
for certain parts in a reusable 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 if
MARR = 10% per year? (a) Solve using tabulated factors.
(b) (Spreadsheet exercises) Solve using single-cell
functions. (c) Using your spreadsheet functions, will the
selection change if the estimated life of the CFRP
material is 4, rather than 2, years?
Material
CFRP
First cost, $
Maintenance cost, $/year -29,000
Salvage value, $
2,000
Life, years
FRC
-205,000 -235,000
-27,000
20,000
2
4
ENGINEERING ECONOMICS
Construct a cash fl ow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5.
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
- Adams Manufacturing spent $30,000 on a new sterilization conveyor belt, which resulted in a cost savings of $4202 per year. The length of time it should take to recover the investment at 8% per year is closest to: (a) Less than 6 years (b) 7 years (c) 9 years (d) 11 yearsarrow_forwardA company that manufactures brushes blowers invested $650,000 in an automated quality controlsystem for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipmenthad a salvage value of $50,000, what rate of return per year did the company make? (Initial guess i = 5%)arrow_forwardThe cost of replacing a high-definition television production line in 6 years is estimated to be $500,000. At an interest rate of 14% per year, compounded semiannually, the uniform amount that must be deposited into a sinking fund every 6 months beginning now is closest to: (a) <$21,000 (b) $21,335 (c) $24,820 (d) $27,950arrow_forward
- A $10,000 loan amortized over 5 years at an interest rate of 10% per year requires payments of $2638 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 5 years, provided the same $2638 payments are made each year?arrow_forwardProfit and loss (in $1000 units) associated with the sale of a vision-guided machine tool loading system and the resulting NCF amounts are recorded. (a) Use sign-change rules to determine the possible number of i* values. (b) Find all i* values between 0 and 100%. (c) If the required MARR for the company is 15% per year, how small can the gradient be for years 3 through 6? Year Cash Flow, $ 0 −5,000 1 −10,100 2 4,500 3 6,500 4 8,500 5 10,500 6 12,500arrow_forwardENGINEERING ECONOMICS Construct a cash flow diagram that represents the amount of money that will be accumulated in 15 years from an investment of $40,000 now at an interest rate of 8% per year.arrow_forward
- The cost of replacing part of a cell phone video chip production line in 6 years is estimated to be $500,000. At an interest rate of 14% per year, compounded semiannually, the uniform amount that must be deposited into a sinking fund every 6 months is closest to: (a) $21, 335 (b) $24, 825 (c) $27,950 (d) $97,995 (d) Any of the above a b C d earrow_forwardAn engineer who believes in “save now; play later” wants to retire in 30 years with $2.0 million. At 8% per year interest, the amount the engineer will have to invest each year (starting in year 1) to reach the $2 million goal is closest to: (a) $17,660 (b) $28,190 (c) $49,350 (d) $89,680arrow_forwardPlease solve fast!!!arrow_forward
- The time it would take for money to double at a simple interest rate of 5% per year is closest to: (a) 10 years (b) 12 years (c) 15 years (d ) 20 yearsarrow_forwardAero Serve, Inc. manufactures cleaning nozzles for reverse pulse jet dust collectors. The company spent $40,000 on a production control system that will increase profits by $11,096 per year for 5 years. The rate of return per year on the investment is closest to: (a) 20% (b) 16% (c) 12% (d) Less than 11%arrow_forwardIf, i=10 Given the cash flows, find: (a) PO, (b) F6, (c) A 100+ 80+ 90+ 0+ 1+ 2+ 3+ 4+ 5+ 6+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:PEARSONEngineering 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 LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial 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