Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
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.
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.
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Students have asked these similar questions
Based on the incremental return shown and the
company's MARR of 16% per year, the alternative
that should be selected is _____
The project initial costs are such that A < C < B.
Comparison Rate of Return, %
(A-DN)
(B-DN)
(C-DN)
(B-A)
(C-A)
(B-C)
Alternative C
Do nothing
Alternative B
Alternative A
Cannot be determined.
17
25
19
14
18
12
The PW-based relation for the incremental cash flow series to find 4/"between the lower first-cost alternative X and alternative Y has
been developed.
0=-22,000+ 9000(P/A,4,10)+(-4000(P/F,A*,10))
Determine the highest MARR value for which Y is preferred over X.
Any MARR value greater than
% favors Y.
Alternative R has a first cost of $73,000, annual M&O costs of $52,000, and a $20,000 salvage value after 5 years. Alternative S has a
first cost of $175,000 and a $43,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs
for alternative S that would yield a required incremental rate of return of 29%.
The M&O cost for alternative S is $
Chapter 6 Solutions
Basics Of Engineering Economy
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - A University of Massachusetts study found that...Ch. 6 - Prob. 10P
Ch. 6 - The Closing the Gaps initiative by the Texas...Ch. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 6 - A company that manufactures rigid shaft couplings...Ch. 6 - For each of the following scenarios, state whether...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - The four alternatives described below are being...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Ashley Foods, Inc. has determined that only one of...Ch. 6 - Five revenue projects are under consideration by...Ch. 6 - Four different machines are under consideration...Ch. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 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 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60APQCh. 6 - Prob. 61APQCh. 6 - Prob. 62APQCh. 6 - Prob. 63APQCh. 6 - Prob. 64APQCh. 6 - Prob. 65APQCh. 6 - Prob. 66APQCh. 6 - Prob. 67APQCh. 6 - Prob. 68APQCh. 6 - Prob. 69APQCh. 6 - Prob. 70APQ
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