ENGINEERING ECONOMY <CUSTOM W/CONNECT>
ENGINEERING ECONOMY <CUSTOM W/CONNECT>
8th Edition
ISBN: 9781260732979
Author: Blank
Publisher: MCG CUSTOM
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Chapter 1, Problem 8P
To determine

The code of ethics for engineers.

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An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000 per year to operate, but because the centrifuge will produce a thicker “cake”, the sludge hauling cost to the monofill will be $37,000 per year less than for the belt presses. The useful lives are 5 and 10 years for alternatives BFP and Cent, respectively, and the salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. Use PW evaluation to select the more economical process at an interest rate of 6% per year over (a) the LCM of lives, and (b) a study period of 8 years. Are the decisions the same?
An American-Australian joint venture has been contracted to provide the train cars for a 25-mile subway system using new tunnel-boring and track-design technologies. Austin, Texas was selected as the proof-of-concept site based on its variety in landscape features (hilly terrain, lake and green space areas, and relatively low precipitation) and its public environmental mindedness. Selection of either a Swiss or Japanese contractor to provide the gears and power components for the electric transfer motor assemblies resulted in two cost alternatives. as shown gives the incremental cash flow estimates (in $1000) over the expected 10-year life of the motors. Determine the number of i* values and estimate them graphically.
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