ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 16, Problem 10P
To determine

To find:Viability of building the over-pass and share of costs to be paid by railroad.

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A manufacturer has been ordered to stop discharging acidic waste into the city sewer. Your analysis shows that the company should choose one of the following systems: System Installed Cost H J $25,000 Your Answer: $35,000 Annual O&M Cost $1,000 in the first year, but grows by 10% each year $500 in the first year, but grows each year by $100 Salvage Value $2,000 $5,000 If the life span of each project is 20 years and interest is assumed to be Y%, which system should be purchased? 4
Problem 3 A piece of equipment is estimated to cost $86,000 new and to have a useful life of 5 years with a salvage value of $14,000. The company believes that a realistic MARR would be 10%. Taxes, insurance, and storage should amount to an additional 8%, which results in an overall cost of money of 10 + 8, or 18%. To recover ownership cost, what is the appropriate amount per hour that must be charged for the equipment usage if the expected use rate of the equipment is 1,200 hours per year?
Calculate the B/C ratio (modified) of a building that houses students during their classroom discussion. Theaccommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its constructioncosts for about 2.3 M. If sold 20 years from its first operating year, it will amount to P250,000. Take MARR = 15% Please solve using economics formula.
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