Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
bartleby

Videos

Textbook Question
Book Icon
Chapter 2, Problem 30P

A company uses a variable speed honing machine to increase the smoothness of the inside walls of hydraulic jacks. The hone uses acid-dipped “brushes” to perform this operation. Increasing the speed of the machine results in faster operation, but reduces brush life. A single “brush” costs $90.00 and can be refurbished several times before its useful life is over. The number of refurbishings depends on the honing speed. Each refurbishing costs $30.00. Assume a refurbished brush can smooth the same amount as a new brush, and that when purchased a new brush is ready to use. The operating cost for the hone and operator is $70.00/hr. Below are the data for operating the hone at 3 different speeds. The time required for changing brushes is incorporated into the honing rates below. Which honing speed is the most economical? Hint: find the cost per jack, not per hone or per cycle!

Chapter 2, Problem 30P, A company uses a variable speed honing machine to increase the smoothness of the inside walls of

Blurred answer
Students have asked these similar questions
Your boss has asked you to evaluate the economics of replacing 1,000 60-Watt incandescent light bulbs (ILBs) with 1,000 compact fluorescent lamps (CFLs) for a particular lighting application. During your investigation you discover that 13-Watt CFLs costing $2.00 each will provide the same illumination as standard 60-Watt ILBs costing $0.50 each. Interestingly, CFLs last, on average, eight times as long as incandescent bulbs. The average life of an ILB is one year over the anticipated usage of 1,000 hours each year. Each incandescent bulb costs $2.00 to install/replace. Installation of a single CFL costs $3.00, and it will also be used 1,000 hours per year. Electricity costs $0.12 per kiloWatt hour (kWh), and you decide to compare the two lighting options over an 8-year study period. If the MARR is 12% per year, compare the economics of the two alternatives and write a brief report of your findings for the boss.  
The annual maintenance cost of a machine is P 70,000. If the cost of making a forging is P 56 and its selling price is P 125 per forged unit, find the number of units to be forged to break-even.
A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $230,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $450 per month for utilities and the investment increases at a rate of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has invested in it? The time it will take is   months.
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education
Break Even Analysis (BEP); Author: Tutorials Point (India) Ltd.;https://www.youtube.com/watch?v=wOEkc3O_Q_Y;License: Standard YouTube License, CC-BY
Cost Volume Profit Analysis (CVP): calculating the Break Even Point; Author: Edspira;https://www.youtube.com/watch?v=Nw2IioaF6Lc;License: Standard Youtube License