ENGINEERING ECONOMIC ENHANCED EBOOK
ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 9, Problem 58P
To determine

To select: The pumps according to the discounted payback period method of capital budgeting.

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Which among the materials will result in the most economical product and at the same time give the best results? Stockholders will be visiting a resins plant. It was decided by the management that they must paint the plant. Boysen paint cost P700 per gallon and covers 350 ft² per gallon. The manufacturer claims that it will last 4 years and can be applied at a rate of 100 ft² per hour.Dutchmaster paint costs P1000 per gallon and covers 500 ft² per gallon. It will last for 5 years and can be applied at a rate of 125 ft² per hour. If the painter is paid P40  per hour, which paint should be used?
A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $7000 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1600. A new power line will cost $14000 to install, with power costs expected to be $1300 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 8.00% per year, which alternative should be selected on the basis of a future worth analysis? (Include a minus sign if necessary.) The future worth of solar cells is $[ and that of electric line is $ (Click to select) :) should be selected on the basis of a future worth analysis.

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ENGINEERING ECONOMIC ENHANCED EBOOK

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