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 41P

Four different machines are under consideration for improving material flow in a production process. An engineer performed an economic analysis to select the best machine, but some of his calculations were deleted from the report by a disgruntled employee. All machines are assumed to have a 10-year life. (a) Fill in the missing numbers in the report. (b) Which machine should the company select if its MARR is 18% per year and one of the machines must be selected?

Chapter 6, Problem 41P, Four different machines are under consideration for improving material flow in a production process.

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Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemized in the Table. If the MARR 15%per year and the analysis period is 12 years, use the PW method to determine PW1, PW2, PW3, PW4, and which one of those four is the best alternative ?
The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost $3 million to install and $142,500 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year and a 20-year project period.   The rate of return is __ % Design __ is selected.

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