Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Are the Project Lives shorter than the analysis period?
Eng. Eco.
Q1 Gamma Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find(a) The break-even sales.
Determine the process to compare alternatives on an equal basis and select the alternative that is wisest from an economic standpoint?
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- More than one correct options are possiblearrow_forwardIdentify the following variables as either discrete or continuous: (a) The number of times heads comes up in 100 tosses of a coin (b) The number of accidents occurring in a specified section of a freeway (c) The weight of boxes shipped from an Amazon warehouse (d) The concentration of carbon dioxide in the air of San Diego versus time (e) Optimistic, most likely, and pessimistic estimates of salvage valuearrow_forwardTwo automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs. System II) shows total yearly costs for the number of maps dispensed per year for both alternatives. Answer the following questions. (a) What is the fixed cost for System I? (b) What is the fixed cost for System II? (c) What is the variable cost per map dispensed for System I? (d) What is the variable cost per map dispensed for System II? (e) What is the breakeven point in terms of maps dispensed at which the two systems have equal annual costs? (f) For what range of annual number of maps dispensed is System I recommended? (g) For what range of annual number of maps dispensed is System II recommended? (h) At 3000 maps per year, what are the marginal and average map costs for each system?arrow_forward
- Find both for design A and B then decide which one is the most economical, thank you.arrow_forwardCanadian oil company is considering whether or not to develop a site it has been exploring for the past six months. One of the arguments for developing the site is that considerable time and money have already been expended. This cost should not be included in the capital budgeting decision because it is: Unsure A.sunk cost B.An agency cost C.An operating cost D.A financing cost E.An opportunity costarrow_forwardEng. Eco. Q1 Gamma Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find(a) The break-even sales quantityarrow_forward
- the factors that affect the decision making in engineering projects are economic factors only Select one: True Falsearrow_forwardA company planning to manufacture Webcams has to decide on the location of the production facility. Three location are being considered A, B and C. the fixed costs at the three locations are estimated to be $40000, $65000, and $32000 per year respectively. The variable costs are $4, $2.5 and $4.5 per unit, selling price in three location is $110, $180 and $90 respectively. Maximum capacity is 12000 unit/year in A, 19500 unit/year in B and 9600 unit/year in C. Find the following below: 1- Break- Even quantity in three location2- Profit or loss in location A when quantity is 400 and 300 3- Profit or loss in location B when quantity is 350 and 450 4- Profit or loss in location C when quantity is 425 and 325 5- Maximum revenues in A, B and C6- Range of profit at Demand in A, B and C Sketch the Break – Even chart each three locationarrow_forwardFrom the graph provided one can surmise that the number of time spent on cost estimation, the less the efficiency one attains. + 30% r Scoping/feasibility + 25% + 20% Order of magnitude estimate + 15% Partially designed + 10% Design 60–100% complete + 5% Detailed estimate 10 minutes 1 hour Time Spent on Estimate A) True B) False Accuracy of Estimate 1 day´ 1 week 3 weeksarrow_forward
- State how the opportunity cost sets the MARR when, because of limited capital, only one alternative can be selected from two or more.arrow_forwardWhich of the following are limitations of the payback period analysis? Select one: a. can lead to erroneous results b. time value of money ignored c. benefits beyond the payback period not considered d. all points mentioned abovearrow_forwardIn the design of a jet engine part, the designer has a choice of specifying either an aluminum alloy casting or steel casting. Either material will provide equal service, but the aluminum casting will weigh 1.2 kg compared with 1.35 kg for the steel casting. The aluminum can be cast for $ 80.00 per kg and the steel one for $35.00 per kg. The cost of machining per unit is $ 150.00 for aluminum and $ 170.00 for steel. Every kilogram of excess weight is associated with a penalty of $ 1,300 due to increased fuel consumption. Which material should be specified and what is the economic advantage of the selection per unit?arrow_forward
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