Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 6, Problem 74CS
To determine
Recommendation.
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Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee. Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
$
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL COSTS (TC)
TOTAL KMS
AVG. FIXED COSTS/KM
$
AVG. VARIABLE COSTS/KM
$
AVG. TOTAL COSTS/KM
$
48000KM
Pierre Rizzo is considering purchasing a new car. The price of the car is $60000, and Pierre hopes to keep it 4 years and then sell it for $19000. Based on past experience, Pierre drives about 12,000 km per year and lives in a downtown
apartment where they must pay a $63 per month parking fee.Pierre has budgeted the following automobile expense items for the next 4 years:
Expense
Gasoline(13.7L Per 100KM)($1.71 Per Liter)
Licence/Registration
Insurance
Maintenance
Tires ($1407 per set that last 42000KM)
Parking (48 Months)
Interest
Depreciation (STRAIGHT LINE)
Cost
Fixed/Variable
Variable
$483
Fixed
$3309
Fixed
$960
Variable
Variable
$3024
Fixed
$3090
Fixed
Fixed
CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION:
TOTAL FIXED COSTS (TFC)
TOTAL VARIABLE COSTS (TVC)
TOTAL KMS
TOTAL COSTS (TC)
48000KM
AVG. FIXED COSTS/KM
AVG. VARIABLE COSTS/KM
S
AVG. TOTAL COSTS/KM
S
The local bank pays 4% interest on savings
deposits. In a nearby town, the bank pays 1% per
quarter. A man who has $3000 to deposit
wonders whether the higher interest paid in the
nearby town justifies driving there.
1. How much will the man receive after 2 years if
he used the local bank? The answer is closest to:
$3123
$3246
$3060
$3186
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
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