Pearson eText for Engineering Economy -- Instant Access (Pearson+)
17th Edition
ISBN: 9780137533138
Author: William Sullivan, Elin Wicks
Publisher: PEARSON+
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Chapter 10, Problem 25P
To determine
Calculated the new incremental cost benefit ratio
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build a modelAn industrial park is being planned for a tract of land near a river. To prevent flood damage to the industrial buildings that will be built on this low-lying land, an earthen embankment can be constructed. The height of the embankment will be determined by an economic analysis of the costs and benefits.The following data have been gathered (Tables 1 and 2). The embankment is expected to last 40 years and will require no maintenance.Whenever the flood water flows over the embarkment, a $310,000 in annual damages occur. The corporation uses an interest rate of 15% a) if they build the embarkment, what height should it have?
Table 1
Table 2
Embankment Height Above Roadway (m)
Initial Cost ($)
Embankment Height Above Roadway (m)
Avg Frequency That Flood Level Will Exceed heigh of embarkment
2.0
$ 100,000.00
2.0
Once in 3 years
2.5
$ 165,000.00
2.5
Once in 8 years
3.0
$ 300,000.00
3.0
Once in 25 years
3.5…
A retrofitted space-heating system is being
considered for a small office building. The
system can be purchased and installed for
$114,000, and it will save an estimated
340,000 kilowatt-hours (kWh) of electric
power each year over afive-year period. A
kilowatt-hour of electricity costs $0.08. The
market value, additional annual operating and
maintenance expenses are negligible. What is
the benefit-cost ratio of the project if the
general inflation rate is 3% per year? The
market interest rate = (im) is 22% per year,
and the annual savings are expressed in year-
zero dollars. Use the benefit-cost method to
make a recommendation.
The benefit-cost ratio of the system with PW
is___---_?
A construction company has to sell at least 30 and 50 from type of equipment E1 and E2. respectively. The company has 270 hours monthly workmanship totally. E1 requires 1 hours workmanship and E2 does 3 hours. The benefits from E1 and E2 are 200 and 300 TL respectively. Find the economic numbers for E1 and E2 for the maximum benefit.
Chapter 10 Solutions
Pearson eText for Engineering Economy -- Instant Access (Pearson+)
Ch. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Four mutually exclusive projects are being...Ch. 10 - Two municipal cell tower designs are being...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - You have been requested to recommend one of the...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26FECh. 10 - Prob. 27FECh. 10 - Prob. 28FECh. 10 - Prob. 29FECh. 10 - Prob. 30FECh. 10 - Prob. 31FE
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