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 2P
To determine
Calculate the required revenue.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
NRG Energy plans to construct a giant solar plant in Santa Teresa, NM to
supply electricity to 30,000 southern NM and west TX homes. The plant will have
390,000 heliostats to concentrate sunlight onto 32 water towers to generate steam.
NRG will spend $460 million in constructing the plant and $430,000 per year in
operating it. If a salvage value of 20% of the initial cost is assumed, how much will
the company have to 'make each year (i.e., AW) for 20 years in order to recover its
investment at a MARR of 10% per year?
$56.83 million per year
$52.86 million per year
$58.65 million per year
$51.63 million per year
$53.87 million per year
Jim Bob holds an engineering degree and is currently employed in an aerospace company in Dallas. Jim Bob has saved about $200,000 since he started working and plans to purchase a house three years from now. His local bank pays 5.25% per year on savings if the account holder keeps the funds a minimum of three year in the account.
How much money will be available to Jim Bob should he decide to purchase a house with the money accumulated in this account for three years?
An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $570 million, spread evenly over two years. The operating life of the plant is expected to be 20 years. Additionally, the plant will operate at full capacity 75% of the time (downtime is 25% of any given year). The MARR is 6% per year
Cash flow diagram only Thank you No need calculation.
Please help
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
- What is the equivalent annual cost in years 1 through 11.00 of a contract that has a first cost of $66,000 in year 0 and annual costs of $17,000 in years 3 through 11.00? Use an interest rate of 10.00% per year. (Round the final answer to three decimal places.) The equivalent annual cost is determined to be $arrow_forwardWhat is the equivalent annual cost in years 1 through 8.00 of a contract that has a first cost of $78,000 in year 0 and annual costs of $16,000 in years 3 through 8.00? Use an interest rate of 12.00% per year. (Round the final answer to three decimal places.)arrow_forwardA permanent endowment at a major university is established to award scholarships to engineering students. The scholarships will be awarded 11 years after the $19000000 lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $19000 each (for infinite years), what annual rate of return must the endowment fund earn?arrow_forward
- A small company heats its building and spends $8000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (ie. the first cash flow is $8800 at EOY 1). Their maintenance on the gas furnace is $345 per year, and this is expense is expected to increase by 15% per year starting one year from now. If the planning horizon is 15 years, what is the total annual equivalent expense for operating and maintaining the furnace? Interest rate is 18% per year. please draw the cash flow diagram please follow the instructions to hit up thanks ib advancearrow_forwardLignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If the company's hurdle rate (MARR) is 21% per year, is this a profitable undertaking? A Click the icon to view the diagram for cash flows. = Click the icon to view the interest and annuity table for discrete compounding when the MARR is 21% per year. The present worth of the venture More info 90 75 60 45 30 15 1 4 5 6 7 8 9 15 ΕΟΥ 30 45arrow_forwardLignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If the company's hurdle rate (MARR) is 20% per year, is this a profitable undertaking? Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year. .... The present worth of the venture is $ million. (Round to two decimal places.)arrow_forward
- Lignin is a basic component of almost any plant that grows, so it is one of the most abundant organic compounds in the world. Almost anything derived from oil can be made out of lignin. The question is "can we do it cost-effectively and consistently?" A startup company has developed a process to derive plastics, carbon fiber and other advanced materials from lignin. The cash flow diagram for this process is shown below (in $ millions). If the company's hurdle rate (MARR) is 15% per year, is this a profitable undertaking? Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. The present worth of the venture is $ million. (Round to two decimal places.) According to the PW Decision Rule, the investment V economically justified.arrow_forwardSwitching to powder coating technology will reduce the emission of volatile organic carbons (VOCs) for a firm's production process. The initial cost is $200,000 with annual costs of $50,000 and revenues of $90,000 in the first year. Revenues are projected to increase by $2,000 annually after Year 1. The salvage value 10 years from now is projected to be $30,000. What rate of return will the firm make on this investment?arrow_forwardAbby purchased 100 shares of her father’s favorite stock for $27 per share exactly 1 year ago, commission free. She sold it today for a total amount of $3200. She plans to invest the entire amount in a different corporation’s stock today, but she must now pay a $30 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects. The total amount that she receives next year is $____.arrow_forward
- You need to purchase new tires for the SUV that was willed to you by your favorite aunt. The all-season light truck tires cost $94 each and are expected to last 30,000 miles. The premium brand on-off-road light truck tires cost $145 each. Assuming you drive 10,000 miles per year, how many years will the premium tires have to last for them to be as economically attractive as the all-season tires at an interest rate of 10% per year? Use factors and a spreadsheet function to find the breakeven point. The premium tires will have to last for NPERDO%-94.145) O 5.3 years, and the spreadsheet function to find the breakeven point isarrow_forwardor cash flows. nd annuity table for discrete compounding More Info million. (Round to two decimal places.) e investment economically justified. 1 EOY 6. Print Done ver box.arrow_forwardmy quesiton is in filearrow_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