Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 11, Problem 31FE
To determine

Calculate the average number of vehicle.

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A community public works project will cost $92,000 and will benefit five different individuals. Individual Individual Benefit ($) Individual Cost ($)  1  4,500 6,000  2 18,500 15,000  3 19,000 17,000  4 30,000 24,000  5 29,000 30,000   Does this project meet the Pareto efficiency improvement criterion? If possible, revise the cost shares to allow the project to meet the Pareto criterion and to pass a referendum. please use excel with formulas
A state is planning to construct a stretch of highway extending to 60 Kilometer. The state signed a contract based on the BOT option (Build, Operate, and Transfer) with a construction company. The construction company will finish the project in two years (30 kilometers per year), after which it will operate the highway for 25 years. The company generates revenues by collecting a flat fees from the cars using the highway. The following information is available: Cost/Kilometer: 1,000,000 S Number of cars using the highway: 500,000 car for the first year of usage, then increase by 5% a year. - Annual operation cost: 100,000 $ for the first year of usage, then increase by 10,000 $ every year. The company's MARR is 8% per year. Calculate the value of the fee charged/car so that the Net Present worth of the project is 25,000,000 S.
An engineering student has only 45 minutes before the final exam in her Engineering Economy class. She needs help in understanding cost-effectiveness analysis because she knows from the instructor’s review session that a CEA problem will be on the exam. There is time for using only one method of assistance before the exam; she must select well. In a rapid process of estimation, she determines how many minutes it would take for each method of assistance and how many points it might gain for her on the final. The method and estimates follow. Where should she seek help to be most effective? Assistance from Minutes for Assistance Points Gained Teaching assistant (TA) 15 20 Slides on web 20 10 Friend in class 10 5 Instructor 20 15
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