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 5, Problem 37APQ

The AW values of three revenue alternatives are $ − 23,000 for A, $ − 21,600 for B, and $ − 27,300 for C. On the basis of these AW values, the correct decision is to:

  1. a. select alternative A.
  2. b. select alternative B.
  3. c. select alternative C.
  4. d. select the do nothing alternative.
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No written by hand solution An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $30,000, an annual operating cost (AOC) of $4,000, and a service life of 2 years. Method B will cost $70,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $115,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost.
Required information One of two methods must be used to produce expansion anchors. Method A costs $65.000 initially and will have a $14.000 salvage value after 3 years. The operating cost with this method will be $23,000 per year. Method B will have a first cost of $140,000, an operating cost of $14,000 per year, and a $32.000 salvage value after its 3-year life. The interest rate for both the methods is 15%. Which method should be used on the basis of a present worth analysis? The present worth of method A Is $ and that of method B is $ Method (Cick to solect) v is selected by the company.
Break-Even Point Hilton Enterprises selis a product for $119 per unit. The variable cost is $68 per unit, while faed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit a. Break-even point in sales units units b. Break-even point if the selling price were increased to 124 per unit units 00

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