Engineering Economy 16th. Edition by William G. Sullivan, Elin M. Wicks, C. Patrick Koelling | 9780133439274 | 133439275 | Holooly

Engineering Economy

Engineering Economy

248 SOLVED PROBLEMS

Question: 5-A-1

Plot the PW versus interest rate for the following cash flows. Are there multiple IRRs? If so, what do they mean? ...

Verified Answer:

Notice there are two sign changes in net cash flow...

Question: 3-C

Four hundred pounds of copper go into a 2,000-square-foot, newly constructed house. Today’s price of copper is $3.50 per pound. If the cost of copper is expected to increase 4.5% per year into the foreseeable future, what is the cost of copper going to be in a new 2,400-square-foot house 10 years ...

Verified Answer:

Cost in 10 years =

\left(\frac{2,400}{2,000}...

Question: 3-B

The manufacturer of commercial jets has a cost index equal to 94.9 per aircraft in 2013. The anticipated cost index for the airplane in 2018 is 106.8. The average compound rate of growth should hold steady for the next 15 years. If an aircraft costs $10.2 million to build in 2014, what is its ...

Verified Answer:

The average compound rate of growth is 2.4% per ye...

Question: 3-A

Develop an estimate for the cost of washing and drying a 12-pound load of laundry. Remember to consider all the costs. Your time is worth nothing unless you have an opportunity to use it for making (or saving) money on other activities. (3.2) ...

Verified Answer:

At a typical household, the cost of washing and dr...

Question: 10.10

CASE STUDY−−Improving a Railroad Crossing Traffic congestion and vehicle safety are significant concerns in most major cities in the Northeast United States. Amajor metropolitan city in New Jersey is considering the elimination of a railroad grade crossing by building an overpass. Traffic engineers ...

Verified Answer:

The city uses the conventional B–C ratio with AW f...

Question: 9.10

CASE STUDY−−Replacement of a Hospital’s Emergency Electrical Supply System Sometimes in engineering practice a replacement analysis involves an existing asset that cannot meet future service requirements without augmentation of its capabilities. When this is the case, the defender with increased ...

Verified Answer:

The after-tax analysis of the first alternative (d...

Question: 8.7

CASE STUDY−−Selecting Electric Motors to Power an Assembly Line A large computer manufacturing company is expanding its operations in response to an increase in demand. To meet the new production goals, the company needs to upgrade its assembly line. This upgrade requires additional electric motors ...

Verified Answer:

Your project team has decided that the overall pro...

Question: 6.7

CASE STUDY−−Ned and Larry’s Ice Cream Company Ned and Larry’s Ice Cream Company produces specialty ice cream and frozen yogurt in pint-sized containers. The latest annual performance report praised the firm for its progressive policies but noted that environmental issues like packaging ...

Verified Answer:

Assuming that Ned and Larry’s is able to sell all ...

Question: 8-E

In mid-2006, a British pound sterling (the monetary unit in the United Kingdom) was worth 1.4 euros (the monetary unit in the European Union). If a U.S. dollar bought 0.55 pound sterling in 2006, what was the exchange rate between the U.S. dollar and the euro? (8.6) ...

Verified Answer:

$1/0.55 pound = $1.82 per pound $1.82 per pound / ...

Question: 8-D

An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (= im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 8% annually? (8.2) ...

Verified Answer:

In 10 years, the investor will receive the origina...

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