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 10, Problem 27FE
To determine
Calculated the incremental cost benefit ratio
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Students have asked these similar questions
You have been asked to perform an economic evaluation of two projects and recommend one of
them for implementation. The project parameters are as follows:
Project A
Project B
Discount
Rate
4.0%
4.0%
Your analysis concludes that:
Project Cost
$1,000,000
$750,000
Project Life
(yrs)
10
15
Elec. Savings Elec. Cost
(kWh/yr)
($/kWh)
800,000
600,000
O Project A is preferable, but Project B also has attractive performance.
O Project B is preferable, but Project A also has attractive performance.
O Project B is preferable and Project A results in a net loss.
O Project A is preferable and Project B results in a net loss.
$0.12
$0.12
Annual Cost
Escalation Rate
1.5%
1.5%
32. A factory has production capacity of P12,000
units per month with an efficiency of 80%
Fixed monthly operating cost = P600,000
Material and labor cost = P200/unit
Selling price = P500.00
Determine the monthly profit
Car A initially costs 500 more than car B. but it consumes 0.04 gallon/mile versus 0.05 gallon/mile for B. Both vehicles last 8 years, and B's Salvage value S 100 smaller than A's. Fuel costs S 1.7 per gallon. Other things being equal. beyond how many miles of use per year does car A become preferable to car B
Chapter 10 Solutions
Engineering Economy, Student Value Edition (17th Edition)
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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