Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
17th Edition
ISBN: 9780134873206
Author: Sullivan, William G.^wicks, Elin M.^koelling, C. P
Publisher: Prentice Hall
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Question
Chapter 11, Problem 5P
(a):
To determine
Calculate the breakeven investment.
(b):
To determine
Calculate the time period.
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You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year.
a. Calculate the PW and FW of this proposal?
b. What is the ERR ( Ԑ=MARR) of this proposal?
c. What is the Simple and Discounted payback?
include the cash flow diagram and conclusion
As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case.
Show that the same selection is made for the following methods:a. RORAI method
b. AWC method
c. PW method
What is the present worth of Option 1? $
Chapter 11 Solutions
Engineering Economy Plus Mylab Engineering With Pe Format: Cloth Bound With Access Card
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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The cash flows associated with each size truck are estimated below.The contractor has established a MARR of 18% per year, and all trucks are expected to have aremaining economic life of 5 years. Using a Do Nothing (DN) option, using SPREADSHEET only,a. Determine which size truck should be purchased.b. If two trucks are to be purchased, what should be size of the second truck?arrow_forwardThe ROR analysis evaluates the increments between two alternatives in pairwise comparisons. Select one: O a. True Ob. Falsearrow_forwardThe incremental rate of return method allows for the evaluation of each increment of increased initial cost for alternatives that could be added to an initial investment. Select one: True False 30arrow_forwardDecision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study period in order to maximize EPW). 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