EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5P
To determine
Calculate the required revenue.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The production of polyamide from raw materials of plant origin, such as castor oil, requires 20% less fossil fuel than conventional production methods.Darvon Chemicals borrowed $6 million to implement the process. If the interest rate on the loan is 10% per year for 10 years, what is the amount of interest for year 2?
A small minority firm TheGlobalTrans invested $100,000 for an intersection signal innovation project. At an interest rate of 15% per year, compounded bimonthly, what is the bimonthly income required to recover the investment in 2 years.
A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000. Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual amount of new income that must be realized at an interest rate of 5% per 6-month period?
Chapter 5 Solutions
EBK BASICS OF ENGINEERING ECONOMY
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10P
Ch. 5 - Two machines with the following cost estimates are...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Estimates have been presented to Holly Farms,...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - A major repair on the suspension system of Janes...Ch. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32APQCh. 5 - Prob. 33APQCh. 5 - Prob. 34APQCh. 5 - Prob. 35APQCh. 5 - Prob. 36APQCh. 5 - The AW values of three revenue alternatives are ...Ch. 5 - Prob. 38APQCh. 5 - Prob. 39APQCh. 5 - Use an interest rate of 10% per year. The...Ch. 5 - Prob. 41APQCh. 5 - Prob. 42APQ
Knowledge Booster
Similar questions
- Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month (pump plus chemicals) at an interest rate of 1% per month. Assume 30 days per month and a 4-year pump life.arrow_forwardA large water utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment, so that everything can be controlled from one site. The first phase will reduce labor and travel cost by $14,000 per year. The second phase will reduce costs by additional $9,000 per year. If Phase-I savings occur in years 0, 1, 2, and 3 and Phase-II occurs in years 4 through 10. Determine the equivalent worth of the upgraded system in years 1 through 10 at an interest rate of 8% per year.arrow_forwardThe highway department expects the cost of maintenance of a piece of heavy construction equipment to be 5000 OMR in year 1, to be 5500 OMR in year 2 and to increase annually by 500 OMR through year 10. At an interest rate of 10% per year, determine the present worth of maintenance cost. Also show the cash flow diagramarrow_forward
- A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is P 10,000 per year and the plan is to increase the payment beginning in year 2, by an additional P 1,000 each year through year 10. Determine the equivalent annual payment if the loan interestrate is 12%.arrow_forwardWestern Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate of 1% per month. Assume 30 days per month and a 4-year pump life.arrow_forwardWestern Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate pf 1% per month. Assume 30 days per month and a 4-year pump life.arrow_forward
- Heat loss through the walls of a heating system means an annual cost of $800,000. An insulation system that would reduce this loss by 33% could be installed for $500,000 and another that would reduce this loss by 20% could be installed for $300,000. Determine if any isolation systems should be used. Assume that the system will be used for 8 years, and that the Attractive minimum rate of return is 5% per year.arrow_forwardengineering economics COURSE QUESTION: Freeport McMoran purchased two model MTVS peristaltic pumps (to inject sulfuric acid and King Lee antiscalant) for use at its nanofiltration water conditioning plant. The cost of the pumps was $950 each. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate of 12% per year, compounded monthly. Assume 30 days per month and a 3-year pump life.arrow_forwardAn oil refinery finds that it is necessary to treat the waste liquids from a new process before discharging them into a stream. In-house treatment will have an annual cost of $50,000 the first year, but process improvements will allow the annual cost to decline by $5,000 each subsequent year. As an alternative, an outside company will process the wastes for an initial cost of $32,400 and an annual fixed price of $30,400/year throughout the 13 year period. Either way, there is no need to treat the wastes after 13 years. Using the AW method, calculate the equivalent uniform annual cost (EUAC) of each alternative and determine how the waste should be processed. The company's MARR is 8%. LOADING... Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year.arrow_forward
- The cost of a fence that can detect poacher intrusion into a National Wildlife Preserve is $3 million per mile. If the effective life of the fence is 10 years, determine the equivalent annual cost of a 10-mile long fence at an interest rate of 8% per year.arrow_forwardThe National Institute on Drug Abuse has spent $15 million on clinical trials to find out whether two vaccines can end the bad habits of nicotine and cocaine addiction. A Swiss company is now testing an obesity vaccine. If the vaccines are semi-successful such that treatment costs and medical bills are reduced by an average of $15,000 per person per year, what is the annual worth of the vaccines for 10 million beneficiaries in year one and an additional 15% people each year through year 5? Use an interest rate of 8% per year.arrow_forwardA company must relocate one of its factories in three years. Equipment for the loading dock is being considered for purchase. The original cost is P 220 000, the salvage value of the equipment after three years is P8000. The company’s rate of return(i) on the money is 10%. Determine the capital rate per year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education