Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 36P
(a):
To determine
Easiest method.
(b):
To determine
Study period.
(c):
To determine
Calculate the annual worth.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Focus on the difference between feasible alternatives. Insulated concrete forms (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 50% less than in a similar wood-framed building in upstate New York. An ICF home will be approximately 10% more expensive to construct than a wood-framed home. For a typical 2,000 ft2 home costing $120 per ft2 to construct in upstate New York and costing $200 per month to heat and cool, how many months does it take for a 2,000 ft2 ICF home to pay back its extraconstruction cost?
A state is planning to construct a stretch of highway extending to 60 Kilometer.
The state signed a contract based on the BOT option (Build, Operate, and Transfer)
with a construction company. The construction company will finish the project in
two years (30 kilometers per year), after which it will operate the highway for
25 years. The company generates revenues by collecting a flat fees from the cars
using the highway. The following information is available:
Cost/Kilometer: 1,000,000 S
Number of cars using the highway: 500,000 car for the first year of usage,
then increase by 5% a year.
- Annual operation cost: 100,000 $ for the first year of usage, then increase by
10,000 $ every year.
The company's MARR is 8% per year.
Calculate the value of the fee charged/car so that the Net Present worth of the
project is 25,000,000 S.
Chapter 6 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 6 - An oil refinery finds that it is necessary to...Ch. 6 - The Consolidated Oil Company must install...Ch. 6 - One of the mutually exclusive alternatives below...Ch. 6 - Three mutually exclusive design alternatives are...Ch. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Fiesta Foundry is considering a new furnace that...Ch. 6 - Prob. 8PCh. 6 - DuPont claims that its synthetic composites will...Ch. 6 - Prob. 10P
Ch. 6 - Which alternative in the table below should be...Ch. 6 - Prob. 12PCh. 6 - The alternatives for an engineering project to...Ch. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Refer to the situation in Problem 6-16. Most...Ch. 6 - An old, heavily used warehouse currently has an...Ch. 6 - Prob. 19PCh. 6 - Two electric motors (A and B) are being considered...Ch. 6 - Two mutually exclusive design alternatives are...Ch. 6 - Pamela recently moved to Celebration, Florida, an...Ch. 6 - Environmentally conscious companies are looking...Ch. 6 - Prob. 24PCh. 6 - Two 100 horsepower motors are being considered for...Ch. 6 - In the Rawhide Company (a leather products...Ch. 6 - Refer to Problem 6-2. Solve this problem using the...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Two electric motors are being considered to drive...Ch. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Potable water is in short supply in many...Ch. 6 - Three mutually exclusive investment alternatives...Ch. 6 - Prob. 36PCh. 6 - A companys MARR is 10% per year. Two mutually...Ch. 6 - Prob. 38PCh. 6 - a. Compare the probable part cost from Machine A...Ch. 6 - A one-mile section of a roadway in Florida has...Ch. 6 - Two mutually exclusive alternatives are being...Ch. 6 - Prob. 42PCh. 6 - IBM is considering an environmentally conscious...Ch. 6 - Three mutually exclusive earth-moving pieces of...Ch. 6 - A piece of production equipment is to be replaced...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Use the imputed market value technique to...Ch. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60PCh. 6 - Prob. 61PCh. 6 - Prob. 62PCh. 6 - Prob. 63PCh. 6 - Prob. 64PCh. 6 - Prob. 65PCh. 6 - Prob. 66PCh. 6 - Three models of baseball bats will be manufactured...Ch. 6 - Refer to Example 6-3. Re-evaluate the recommended...Ch. 6 - Prob. 69SECh. 6 - Prob. 70SECh. 6 - Prob. 71SECh. 6 - Prob. 72CSCh. 6 - Prob. 73CSCh. 6 - Prob. 74CSCh. 6 - Prob. 75FECh. 6 - Prob. 76FECh. 6 - Prob. 77FECh. 6 - Complete the following analysis of cost...Ch. 6 - Prob. 79FECh. 6 - For the following table, assume a MARR of 10% per...Ch. 6 - Prob. 81FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Prob. 83FECh. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Problems 6-82 through 6-85. (6.4) Table P6-82 Data...Ch. 6 - Consider the mutually exclusive alternatives given...Ch. 6 - Prob. 87FE
Knowledge Booster
Similar questions
- The bookstore at Tech purchases jackets emblazoned with the school name and logo from a vendor. The vendor sells the jackets to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the annual carrying cost is 25% of the cost of a jacket. The bookstore manager estimates that 1700 jackets will be sold during the year. The vendor has offered the bookstore the following volume discount schedule: Order Size 1–299 Discount 0% 300–499 2% 500–799 4% 800+ 5%arrow_forwardA school is overcrowded and there are three options. The do-nothing alternative corresponds to continuing to use modular classrooms. The school can be expanded, or a new school can be built to "split the load" between the schools. User benefits come from improvements in school performance for the expanded or new schools. If a new school is built, there are more benefits because more students will be able to walk to school, the average distance for those who ride the school buses will be shorter, and the schools will be smaller and more "student friendly." The disbenefits for the expanded school are due to the impact of the construction process during the school year. The interest rate is 8%, and the life of each alternative is 20 years. Which alternative should be chosen? What is the incremental ratio for the preferred alternative? Alternative User benefits ($M/yr) User disbenefits ($M) First cost ($M) Operations and maintenance ($M/yr) (a) Use the benefit-cost ratio. (b) Use the…arrow_forwardConsider the following assumptions, field size 640 acres, non-cropped area 5 acres, 2600' total length center pivot cost of 30,000 with a life expectancy of 15 years, corn selling price of $3.75 per bushel, expected grain yield of 160 bushels per acre. If SDI irrigation costs $675 per acre installed with a life expectancy of 25 years, expected yield of 160 bushels per acre, you would be money ahead to install SDI. True Falsearrow_forward
- A small automotive supply company manufactures fuel gauges for various types of cars. The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88. The average price the fuel gauge sells for is $48.20 The company manufactures its products 252 days per year. What is the minimum number of fuel guages per day that the company must produce in order to break even?arrow_forwardPure gasoline has an energy density of 115,600 BTU per gallon while ethanol has an energy density of 75,670 BTU per gallon. If gasoline costs $3.50 per gallon, (a) what would the cost of pure ethanol have to be in order for the energy costs of the two fuels to break even? (b) What would the price of E85 (85% ethanol, 15% gasoline) have to be for its energy cost to be the same as that of pure gasoline?arrow_forwardA company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C Sketch the Break – Even chart each three locationarrow_forward
- Feasibility analysis for the immaginary vegetarian restaurantarrow_forwardPravjot Limited is launching a new product in 12 weeks and has a project team working on pricing strategy. The team has conducted some initial market research and considers that at a price of £400 no items will be sold, however for each successive price reduction of £25, weekly sales will increase by 10 units. The weekly product specific fixed costs are £2,500 and the variable costs are £75. Required: Calculate the optimum selling price and the quantity that would be sold at that price.arrow_forwardConstruction on your custom home is complete and now the yard must be landscaped. The landscape contractor has estimated that 8 cubic yards of dirt and 3 cubic yards of sand will be required to level the yard and provide proper drainage. Dirt is priced at $35 per cubic yard and sand is priced at $27 per cubic yard. She has measured the yard and calculated the area needing sod to be 3600 ft2. Sod is sold in rolls that measure 90 ft? at a cost of $10 each per roll. Shrubbery installation will cost an additional $2500. Estimate the cost of the landscaping.arrow_forward
- Mowbot Company is evaluating several alternatives for its next new product. Cost and revenue estimates are as follows: Alternative A B C D Up front cost $ (600,000) $ (800,000) (470,000) $ (540,000) Residual value $ 70,000 S 130,000 $ 65,000 S 200,000 Annual revenue $ Annual cost $ (130,000) 400,000 $ S 600,000 $ 260,000 $ 320,000 (27,000) S (70,000) $ (120,000) Life (years) 10 10 10 10 In addition, doing nothing is an alternative. Mowbot evaluates projects based on a MARR of 20%. Use INCREMENTAL PRESENT WORTH ANALYSIS to determine which, if any, alternative to pursue. Show all calculations.arrow_forwardPROBLEM NO. 1: The cost of producing a commodity consists of P35 per unit of labor, P42 per unit of materials, and P10 per unit for other variable costs. Cost of utilities and rents amounts to P850,000 per month. If the commodity is sold at P310 each; (a) What is the profit/loss if 3369 units were sold? (b) How many pieces must be produced each month for the manufacturer to breakeven?arrow_forwardNote:- 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_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