Pearson eText for Engineering Economy -- Instant Access (Pearson+)
17th Edition
ISBN: 9780137533138
Author: William Sullivan, Elin Wicks
Publisher: PEARSON+
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Chapter 12, Problem 18P
To determine
Calculate the probability.
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Two proposals remain for consideration that have been put forward for a hydroelectric system. Moreover, the water system of alternative 1 will cost $30 (unit $0,000) and need to be replace every 10 year indefinitely (starting end of year 10), and the water system of alternative 2 will cost $40 (unit $0,000) and will need to be replace every 15 year indefinitely (starting end of year 15). Estimate annual cost for each system which alternatives should be invested if the corporate MARR is currently 10% per year.
Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $45,000. The printing costs are a flat $7000 for setup plus $8.00 per book. The author's royalty is 8% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $8000.
a. If the price to bookstores is set at $35, how many books must be sold to break even? (Round the answer up to the nearest whole number.)
b. The marketing department is forecasting sales of 4800 books at the $35 price. What will be the net income from the project at this volume of sales?
A copper wire has a material cost that varies proportionally with the cross-sectional area (A)
according to the expression $40,000 A. This wire has a lifetime of 30 years and a salvage value of
$1500 A at that time. As the cross-sectional area of the wire increases, the resistance of the wire
decreases such that the energy losses in the wire also decrease. The costs of these energy losses
vary indirectly with the cross-sectional area according to the expression $70,000/A. Assuming an
interest of 9%, what is the optimal value for this cross-sectional area?
(Chapter 6- Annual Equivalent Worth Analysis)
Chapter 12 Solutions
Pearson eText for Engineering Economy -- Instant Access (Pearson+)
Ch. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - A new snow making machine utilizes technology that...Ch. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10P
Ch. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - If the interest rate is 8% per year, what decision...Ch. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26SE
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