Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 36P

The four alternatives described below are being evaluated.

  1. a. If the proposals are independent, which one(s) should be selected at a MARR of 17% per year?
  2. b. If the proposals are mutually exclusive, which one should be selected at a MARR of 14.5% per year?
  3. c. If the proposals are mutually exclusive, which one should be selected at a MARR of 10.0% per year?

Chapter 6, Problem 36P, The four alternatives described below are being evaluated. a. If the proposals are independent,

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Three mutually exclusive alternatives are being considered for the production equipment at a tissue paper factory. The estimated cash flows for each alternative are given here. (All cash flows are in thousands.)Which equipment alternative, if any, should be selected? The firm’s MARR is 20% per year. Please state your assumptions.
An estimated 6 billion gallons of clean drinking water disappear each day across the United States due to aging, leaky pipes, and water mains before it gets to the consumer or industrial user. The American Society of Civil Engineers (ASCE) has teamed with municipalities, counties, and several excavation companies to develop robots that can travel through mains, detect leaks, and repair many of them immediately. Four proposals have been received for funding. There is a $100 million ($100 M) limit on capital funding and the MARR is established at 12% per year. (a) Use the IROR to rank and determine which of the four independent projects should be funded. (Solve by hand or spreadsheet as instructed.) (b) Determine the rate of return for the projects selected in part (a). (c) Determine the overall rate of return for the projects selected in part (a), assuming that excess funds are invested at the MARR. Is the overall return economically acceptable? First Estimated Annual Project Project…
State how the opportunity cost sets the MARR when, because of limited capital, only one alternative can be selected from two or more.

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Basics Of Engineering Economy

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