Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 40P

Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated. Income estimates are not known at this point.

Chapter 6, Problem 40P, Five revenue projects are under consideration by General Dynamics for improving material flow , example  1

An engineer determined the incremental ROR (Δi*) values. From these results, determine which project, if any, should be undertaken, provided the company’s MARR is (a) 13.5% per year, and (b) 16% per year. If other calculations must be made in order to make a decision, state which ones are necessary.

Chapter 6, Problem 40P, Five revenue projects are under consideration by General Dynamics for improving material flow , example  2

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