ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Chapter 13, Problem 31P
To determine
To determine the optimum replacement year of pollution testing system and compute the cost advantage of the same.
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Problem 8
A colleague has completed the following set of estimated
costs and salvage values for a proposed machine with an initial cost of $15,000.
However, he doesn't know how to find the most economic useful life. To
demonstrate, you compute the equivalent uniform annual cost (EUAC) for year eight
(EUAC) using a MARR of 15%
Useful Estimated Estimated
Life
End-of-
Salvage
(years)
Year MX
Value
1
$0
$10,000
2
$0
$9000
3
$300
$8000
4
$300
$7000
5
$800
$6000
6
$1300
$5000
7
$1800
$4000
8
$2300
$3000
9
$2800
$2000
10
$3300
$1000
Define replacement analysis
The following data shows the different sizes of pipes which a company wishes to use as a replacement for the old pipesystem that they are using.Diameter 100mm Cost of Pipe-P1800000 Annual Maintenance Cost-P88000 Operating cost/hour=P480Diameter 150mm Cost of Pipe-Pl 120000 Annual Maintenance Cost-Pl 36000 Operating cost/hour=P500Diameter 250mm Cost of Pipe-Pl 000000 Annual Maintenance Cost-P60000 Operating cost/hour=P620Total number of operating hours per year 500Replacement is done every 10 yearsMoney is worth 10% annuallyCompute the equivalent annual cost of the 100mm pipe.
Chapter 13 Solutions
ENGR.ECONOMIC ANALYSIS
Ch. 13 - Prob. 1QTCCh. 13 - Prob. 2QTCCh. 13 - Prob. 3QTCCh. 13 - Prob. 4QTCCh. 13 - Prob. 5QTCCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - Prob. 4PCh. 13 - Prob. 5P
Ch. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Prob. 14PCh. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 23PCh. 13 - Prob. 24PCh. 13 - Prob. 25PCh. 13 - Prob. 26PCh. 13 - Prob. 27PCh. 13 - Prob. 28PCh. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - Prob. 31PCh. 13 - Prob. 32PCh. 13 - Prob. 33PCh. 13 - Prob. 34PCh. 13 - Prob. 35PCh. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Prob. 38PCh. 13 - Prob. 39PCh. 13 - Prob. 40PCh. 13 - Prob. 41PCh. 13 - Prob. 42PCh. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - Prob. 45PCh. 13 - Prob. 46PCh. 13 - Prob. 47PCh. 13 - Prob. 48PCh. 13 - Prob. 49PCh. 13 - Prob. 50PCh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Prob. 53PCh. 13 - Prob. 54PCh. 13 - Prob. 55PCh. 13 - Prob. 56P
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