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 60APQ
To determine
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Why do most of the engineers and financial managers prefer rate-of-return analysis to the PW method?
The PW of five independent projects have been calculated at an MARR of 12% per year. Select the best combination at a capital investment limit of (a) $25,000, (b) $49,000, and (c) unlimited. Initial Life, Project Investment, $ Years PW, $ S ā15,000 6 8,540 A ā26,000 8 12,100 M ā10,000 6 3,000 E ā25,000 4 10 H ā40,000 12 15,350
Based on PW values, determine which of the following independent projects should be selected for investment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow)
Ā
Project
Initial Investment, $
NCF, $/Year
Life, Years
A
ā100,000
50,000
8
B
ā125,000
24,000
8
C
ā120,000
75,000
8
D
ā220,000
39,000
8
E
ā200,000
82,000
8
Chapter 6 Solutions
Basics Of Engineering Economy
Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - A University of Massachusetts study found that...Ch. 6 - Prob. 10P
Ch. 6 - The Closing the Gaps initiative by the Texas...Ch. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - Prob. 21PCh. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - Prob. 25PCh. 6 - A company that manufactures rigid shaft couplings...Ch. 6 - For each of the following scenarios, state whether...Ch. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - The four alternatives described below are being...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Ashley Foods, Inc. has determined that only one of...Ch. 6 - Five revenue projects are under consideration by...Ch. 6 - Four different machines are under consideration...Ch. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 51PCh. 6 - Prob. 52PCh. 6 - Prob. 53PCh. 6 - Prob. 54PCh. 6 - Prob. 55PCh. 6 - Prob. 56PCh. 6 - Prob. 57PCh. 6 - Prob. 58PCh. 6 - Prob. 59PCh. 6 - Prob. 60APQCh. 6 - Prob. 61APQCh. 6 - Prob. 62APQCh. 6 - Prob. 63APQCh. 6 - Prob. 64APQCh. 6 - Prob. 65APQCh. 6 - Prob. 66APQCh. 6 - Prob. 67APQCh. 6 - Prob. 68APQCh. 6 - Prob. 69APQCh. 6 - Prob. 70APQ
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- The capital fund for new investment at Systems Corporation is limited to $75,000 for next year. You have been asked to recommend one or more of three projects as economically acceptable for investment at the corporate MARR of 15% per year. Perform the analysis in two ways: (a) by hand, and (b) using NPV functions and a spreadsheet. Initial Annual NCF, Life, Salvage Project Investment, $ $/Year Years Value, $ A ā25,000 6,000 4 4,000 B ā30,000 9,000 4 ā1,000 C ā50,000 15,000 4 20,000arrow_forwardPT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150 million and operational and maintenance costs of IDR 35000 per hour.In addition, the company must pay other costs of Rp. 75 million per year.Based on the time standard obtained from the study of work procedures and measurement techniques, it can be estimated that it takes 150 hours to produce 1000 units of product.Furthermore, it is also estimated that the price per unit of product is Rp. 15000 and the investment is for 10 years with a salvage value of zero.With a MARR of 20%, calculate how many units must be produced for the firm to break even.arrow_forwardEngineering Economics Bawal gumamit ng excel( Don't use Excel) A small company has P20,000 in surplus capital that it wishes to invest in new revenue producingĀ projects. Three independent sets of mutually exclusive projects have been developed. The usefulĀ life of each is five years and all market values are zero. You have been asked to perform an IRRĀ analysis to select the best combination of projects. If the MARR is 12% per year, whichĀ combination of projects would you recommend?arrow_forward
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