EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220100255052
Author: Blank
Publisher: MCG
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Chapter 4, Problem 33P

a:

To determine

Select the project.

b:

To determine

Calculate the future worth through calculator function.

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The Annual Worth (AW) value is comprised of two components. These components are: a. CR + A b. AW + S c. P + AW d. CR + F The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operating cost for power, site maintenance, etc. is $13,000. If the salvage value of the pumps, blowers, and control systems is expected to be $9000 at the end of 10 years, the AW of the packed-bed reactor, at an interest rate of 8% per year, is closest to:   a. $−24,900 b. $−25,518 c. $−13,140 d.   $−26,140
A company is considering three pieces of equipment. Equipment A has a first cost of $80,000, AOC of $20,000, and a salvage value of $19,000 after 3 years. Equipment B will cost $210,000 with an AOC of $35,000 and a salvage of $40,000 after 9 years, and Equipment C has the first cost of S150,000 with an AOC of $28,000 and a salvage value of 30,000 after 6 years Which equipment should the company select at an interest rate of 10% per year?
At the Motorola plant in Mesa, Arizona, it is desired to determine whether one-inch-thick insulation or two-inch-thick insulation should be used to reduce heat loss from a long section of steam pipe. The heat loss from this pipe without any insulation would cost Php200 per linear foot per year. The one-inch insulation will eliminate 88% of the heat loss and will cost Php60 per foot. Two-inch insulation will eliminate 92% of the heat loss and will cost Php110 per foot. The steam pipe is 1,000 feet in length and will last for10 years. MARR = 6% per year. Which insulation thickness should be recommended?

Chapter 4 Solutions

EBK BASICS OF ENGINEERING ECONOMY

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