2023W2 Assignment 1 - for release

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School

University of British Columbia *

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Course

481

Subject

Economics

Date

Apr 3, 2024

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pdf

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3

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Assignment 1 EECE/CPEN 481 Instructor: Jeff Carmichael 1. Problem 1 (1.2 points) 2. Problem 2 (1.5 points) 3. Problem 3 4. Problem 4 (0.5 points) 5. Problem 5 (0.8 points)
1. Problem 1 In which of the following situations would engineering economics analysis play a prominent role, and why? a. Buying new equipment b. Changing design specifications for a product c. Deciding on the paint colour for the factory floor d. Hiring a new engineer e. Deciding when to replace old equipment with new equipment of the same type f. Extending the cafeteria business hours g. Deciding which invoice forms to use h. Changing the 8-hour work shift to a 12-hour one i. Deciding how much to budget for research and development programs j. Deciding how much to donate to the town’s new library k. Building a new factory l. Downsizing the company 2. Problem 2 A small machine shop purchases electricity under the following rates: Usage charges: First 1,000 kWh at 14 cents per kWh Next 1,000 kWh at 20 cents per kWh Any additional kWh at 30 cents per kWh Demand charges: First 25 kW without cost Next 75 kW at $ 5 per kW Any additional kW at $7 per kW The shop uses 3,800 kWh per month, and has a peak usage of 160 kW. a) Calculate the total monthly bill, including usage and demand charges, for this shop. b) What are the average and marginal usage charge costs per kilowatt hour? (Ignore demand charges.) c) What will the blended rate per kilowatt hour be (including demand charges)? d) If the shop uses 1,500 kWh more energy each month, but doesn’t increase its peak usage, how much will the monthly bill increase? Which marginal usage charge applies? e) If the shop adds additional machinery that will be used only occasionally each month, it will increase peak usage by an additional 50 kW and will increase energy usage by 400 kWh each month. How much will the monthly bill increase?
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