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
Textbook Question
Chapter 6, Problem 41P
Four different machines are under consideration for improving material flow in a production process. An engineer performed an economic analysis to select the best machine, but some of his calculations were deleted from the report by a disgruntled employee. All machines are assumed to have a 10-year life. (a) Fill in the missing numbers in the report. (b) Which machine should the company select if its MARR is 18% per year and one of the machines must be selected?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
A project has a first cost of $200,000 with annual costs of $50,000 and revenue of $90,000 per year.What is the payback period at (a) no-return, and (b) i = 7% per year?
Please correct answer and don't use hand rating
8
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
Additional Business Textbook Solutions
Find more solutions based on key concepts
A case study in this chapter discusses the federal minimum-wage law. a. Suppose the minimum wage is above the e...
Principles of Economics, 7th Edition (MindTap Course List)
Drought cuts the quantity of wheat grown by 2 percent. If the price elasticity of demand for wheat is 0.5, by h...
Foundations of Economics (8th Edition)
Exercise B1 What point is preferred along an indifference Curve?
Principles of Economics 2e
If a 3-percent increase in the price of corn flakes causes a 6-percent decline in the quantity demanded, what i...
Microeconomics (9th Edition) (Pearson Series in Economics)
The use of factor of production by business.
Economics Today and Tomorrow, Student Edition
Explain how to derive a total expenditures (TE) curve.
Macroeconomics
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What is FW of Design A, Design B, and Design C. Which alternative should be chosen. Do not round off in the solution.arrow_forwardEvaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 USING FUTURE WORTH (FW)arrow_forwardThe price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borrowing any money? Solve by (a) trial and error, and (b) by spreadsheet.arrow_forward
- You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative X Y First cost, $ −45,000 −58,000 Maintenance cost, $/year −8,000 −4,000 Salvage value, $ 2,000 12,000 Life, years 5 5arrow_forwardEvaluate a combined cycle power plant on the basis of the FW method when the MARR is 12% per year. Pertinent cost data are as follows : Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual operating expenses $1,000 Overhaul cost—end of 5th year $200 Overhaul cost—end of 10th year $550 WITH DIAGRAM CASH FLOW THANK YOUarrow_forwardQUESTION 8 A professional photographer who specializes in wedding-related activities paid $46,500 for equipment that will have a $2000 salvage value after 5 years. He estimates that his costs associated with each event amount to $65 per day. If he charges $200 per day for his services, how many days per year must he be employed in order to break even at an interest rate of 8% per year? The number of days required for break even, (in days per year) Round to the nearest three (3) decimal placesarrow_forward
- For the two alternatives, demonstrate that the sum of the incremental cash flow series (Z − X) over the LCM is equal to the difference in the sums of the individual cash flow series for X and Z. System X Z First cost, $ −40,000 −95,000 AOC, $ per year −12,000 −5,000 Salvage value, $ 6,000 14,000 Life, years 3 6arrow_forwardA professional mechanics who specializes in truck engines paid $46,000 for equipment that will have a $4800 salvage value after 5 years. The costs with each usage amount to $60 per day. The income is $290 per day for his services, how many days per year must he be worked in order to break even at an interest rate of 7% per year?arrow_forwardHandheld fiber-optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If a base unit sells for $2950 and its variable cost is $2075, (a ) how many units must be sold each year for breakeven? (b ) what will the profit be for sales of 3000 units per year?arrow_forward
- For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year 0, (b) in year 3, and (c) in year 6. Machine First cost, $ AOC, $ per year Salvage value, $ Life, years A -15,000 -1,600 3.000 (a) = = -10000 (b) = 13200 (c) =6000 (a) = -10000 (b) = -1800 (c) = 4200 3 (a) = -10000 (b) = 13200 (c) = 4200 (a) = -10000 (b) = -1800 (c) = 3000 B -25,000 -400 6.000 6arrow_forwardA chemical processing corporation is considering two methods to dispose of a non-hazardous chemical sludge: land application and fluidized-bed incineration. The estimates for each method are shown below. Use the Annual Worth (AW) method at interest 10% per year to select the better alternative Land Application Incineration First cost, $ - 130,000 - 900,000 Annual operating cost, $ - 95,000 - 60,000 Salvage value, $ 25,000 300,000 Life, years 3 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Serles Payments Arithmetic Gradients Compound Amount Present Sinking Fund Compound Amount Capital Recovery A/P Gradient Present Worth P/G Gradient Uniform Series A/G Present Worth Worth F/P P/F A/F F/A P/A 1.00000 1.0000 2.1000 1.10000 0.57619 0.40211 1.1000 0.9091 0.9091 0.8264 0.7513 2 1.2100 0.47619 1.7355 0.8264 0.4762 2.4869 2.3291 4.3781 6.8618 9.6842 1.3310 0.30211 3.3100 0.9366 1.3812 0.31547 0.26380 0.22961 0.20541 0.21547 4.6410 3.1699 0.6830 0.6209 4…arrow_forwardAn environmental engineer wants to evaluate three different methods for disposing of nonhazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. Use the estimates below to help her determine which has the least cost at /= 13% per year on the basis of an annual worth evaluation. First Cost AOC per Year Salvage Value Life Land $-145.000 $-91,000 $23,000 4 years Incineration $-910,000 $-50,000 $310,000 6 years The environmental engineer selects a✔(Click to select) private disposal contract land application fluidized-bed incineration Contract. 0 $-132,000 0 2 yearsarrow_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
Break Even Analysis (BEP); Author: Tutorials Point (India) Ltd.;https://www.youtube.com/watch?v=wOEkc3O_Q_Y;License: Standard YouTube License, CC-BY
Cost Volume Profit Analysis (CVP): calculating the Break Even Point; Author: Edspira;https://www.youtube.com/watch?v=Nw2IioaF6Lc;License: Standard Youtube License