EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220100255052
Author: Blank
Publisher: MCG
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Chapter 6, Problem 40P
Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated. Income estimates are not known at this point.
An engineer determined the incremental ROR (Δi*) values. From these results, determine which project, if any, should be undertaken, provided the company’s MARR is (a) 13.5% per year, and (b) 16% per year. If other calculations must be made in order to make a decision, state which ones are necessary.
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Chapter 6 Solutions
EBK BASICS OF ENGINEERING ECONOMY
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