Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 57P
To determine
Calculate the affordable cost of blower.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Your boss has asked you to look into optimizing the commercial van ownership
strategy for your company. The company you work for bought a van for $95,600 for
making deliveries. You expect the van to be driven 17,000 miles per year, with each
mile costing you around $1.00 per mile in the first year. The operating cost per mile
is expected to increase by 7% per year after the first year. The resale value of the van
is expected to decrease by 15% in the first year and then by 7% per year from there
on out. What is the optimal ownership period (economic life) in years assuming a
MARR of 9%?
8 years
4 years
7 years
5 years
3 years
6 years
A 20 kW enclosed motor with a load factor of 70% and an efficiency of 87.5% will be replaced by a new 20 kW enclosed motor operating at the same load factor, but will now have a higher efficiency of 91%. How many kW of power savings will be obtained from this project?
Note: Give me both a&b right solutions. I will give good rating.
An intergated, combined cycle power plant produces 300 MW of electricity by gasifying coal. the captial investment for the plant is $630 million, spread evenly over two years. the operating life of the plant is expected to be 25 years. additionally the plant will operate at full capacity 76% of the time ( downtime is 24% of any given year ) the MARR is 9% per year
a) if this plant will make a profit of two cents per kilowatt-hour of electricity sold to the power grid, what is the simple payback period of the plant ? is it a low-risk venture ?
b) what is the IRR for the plant ? is it profitable ?
Chapter 6 Solutions
Engineering Economy
Ch. 6 - Prob. 1PCh. 6 - The Consolidated Oil Company must install...Ch. 6 - Prob. 3PCh. 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 - Prob. 9PCh. 6 - Consider the following cash flows for two mutually...
Ch. 6 - Prob. 11PCh. 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 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 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 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Potable water is in short supply in many...Ch. 6 - Prob. 35PCh. 6 - Prob. 36PCh. 6 - In the design of a special-use structure, two...Ch. 6 - Prob. 38PCh. 6 - a. Compare the probable part cost from Machine A...Ch. 6 - Prob. 40PCh. 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 - Prob. 54PCh. 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
- Nowadays it is very important to reduce one's carbon footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy (e.g., solar energy) are vital to a "sustainable" lifestyle and a lower carbon footprint. Let's consider solar panels that prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $2,436, and they reduce the homeowner's energy bill by $30.5 per month. The residual value of the solar panels is negligible at the end of their 8-year life. What is the annual effective IRR of this investment? The annual effective IRR of this investment is%. (Round to two decimal places.) please explain using excelarrow_forwardQUESTION 1 A new production system for a factory is to be purchased and installed for $179,949. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $8,703 at year 6. Using the AW method to analyzes if this investment is economically justified A- calculate the AW of the above investment and insert the result below. -44377.1565arrow_forward8 units of milling machine that costs $ 267228 each are bought today. They can be used for 10 years and can be sold at $ 33454 each at the end of their useful life. Lubrications and minor repairs are estimated to be $ 21139 per unit, annually. Each machine is expected to operate at an average of 2978 hours per year at an average power consumption of 1.9 kW per unit. The effective annual interest rate is 2.5%. Assume that the distribution utility charges $ 9/kWhr. Using captalized cost principle, determine the following: a.) captalized cost of the investment, b.) total present worth of all the costs that occur annually (annually recurring cost) in the whole investment, c.) total present worth of all the costs that occur one-time (non-recurring) in the whole investmentarrow_forward
- Two electric motors are being economically evaluated for the use in unmanned vehicle. Each is capable of delivering 90 horsepower to a necessary application that the vehicle performs. Data for the mutually exclusive motors as follows: If the expected usage of the motor is 700 hours per year, what would the cost of electric power have to be (in $ per kWh) before the Motor Y is favored over the Motor X? Use i =10% per year. (1 horsepower = 0.746 kilowatts)arrow_forwardFor a motor to operate a pump, a design engineer must choose the horsepower. Horsepower rating is a design characteristic that can vary from 10 to 40 horsepower. The motor will cost $120 per year to operate, plus $0.60 per horsepower. The running expenses of such motors will be $0.055 per horsepower-hour divided by the horsepower rating. Each year, 9,000 horsepower-hours will be required. Determine how much horsepower should be supplied to keep the overall yearly cost to a minimal. Demonstrate that your entire cost each year has been reduced.arrow_forwardExtended Learning Exercise A company is producing a high-volume item that sells for $0.75 per unit. The variable production cost is $0.30 per unit. The company is able to produce and sell 10,000,000 items per year when operating at full capacity. The critical attribute for this product is weight. The target value for weight is 1,000 grams, and the specification limits are set at ±50 grams. The filling machine used to dispense the product is capable of weights following a normal distribution with an average (µ) of 1,000 grams and a standard deviation (σ) of 40 grams. Because of the large standard deviation (with respect to the specification limits), 21.12% of all units produced are not within the specification limits. (They either weigh less than 950 grams or more than 1,050 grams.) This means that 2,112,000 out of 10,000,000 units produced are nonconforming and cannot be sold without being reworked. Assume that nonconforming units can be reworked to specification at an…arrow_forward
- A pump for a reservoir must be operated continuously (8,760 hours per year). In the event of a large storm, the electricity from the local utility’s power grid may be interrupted for an indefinite period of time. To deal with this emergency situation, two mutually exclusive backup diesel generators are being investigated. One of them will be chosen for implementation. Relevantdata are provided as follows: If salvage values of both generators are negligible and the study period is 60 years, which generator should be chosen? The MARR is 10% per yeararrow_forwardA transportation engineer received a request to install dynamic traffic signals to replace static vehicle control devices at an intersection. The engineer must prepare an estimate of an operating budget for a 10-year period, if the signals were installed. The initial cost of the signals is $35,000 and the installation costs are $12,000. The estimated energy cost to operate the signals for the first year is $1000. The energy cost is expected to increase uniformly each year by 1.5% of the first year's energy cost. Assume an interest rate of 8%. What is the EUAC for the operating budget? Salvage value at the end of the 10-year period is negligible.arrow_forwardNEV, Inc. wants to evaluate two new methods that will improve their productivity. Both alternatives have 22 years of service life and NEV uses MARR of 13%. Alternative A has a first cost of $3,315,000 Maintenance cost will start end of year three due to an incentive in the contract with the manufacture that will give free maintenance in the first 2 years. The maintenance cost at end of year three is $42,000 and will increase by $2,700 starting end of year four and continue to increase with the same value thereafter till the end of its service life. A three-times major repair will occur. The first one is at end of year 8 that will cost $56,000, the second one is at end of year 13 and will cost $32,000 and the third and last major repair is $27,500 at end of year 19. The expected revenues from this alternative are $572,000 per year starting end of year 1 and this option will have a salvage value of $840,000 at the end of its service life. Alternative B has a first cost of $2,570,000 and…arrow_forward
- An airline is considering two types of engine systems for use in its planes. Each has the same life and the same maintenance and repair record. System A costs 5 million and uses 48,000 liters per 1,000 hours of operation at the average load encountered in passenger service. System B costs 10 million and uses 38,400 liters per 1,000 hours of operation at the same level. Both engine systems have 3-year lives before any major overhaul. Based on the initial investment, the systems have 10% salvage values. If jet fuel costs 108 a liter, and fuel consumption is expected to increase at the rate of 6% each year due to degrading engine efficiency, which engine system should the firm install? Assume 2,000 hours of operation per year, and a MARR of 10%.arrow_forwardNowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy (e.g., solar energy) are vital to a "sustainable" lifestyle and a lower carbon footprint. Let's consider solar panels that prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $3000 and they reduce the homeowner's energy bill by $30 per month. The residual value of the solar panels is negligible at the end of their 10-year life. What is the annual effective IRR of this investment? The annual effective IRR of this investment is%. (Round to two decimal places.)arrow_forwardNowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy (e.g., solar energy) are vital to a "sustainable" lifestyle and a lower carbon footprint. Let's consider solar panels that prewarm the water fed to a conventional home water heater. The solar panels have an installed cost of $2,500, and they reduce the homeowner's energy bill by $426 per year. The residual value of the solar panels is $550 at the end of their 9-year life. What is the annual IRR of this investment? Use the trial-and-error method starting with an initial guess of 13%. (a) The annual IRR of this investment is 10.72%. (Round to two decimal places.) (b) If the homeowner's MARR is 10%, is the investment economical? O A. No B. Yesarrow_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