Questions from Engineering

Q: The cost characteristics of a CO testing machine that was purchased 5

The cost characteristics of a CO testing machine that was purchased 5 years ago for $100,000 are shown below. The equation to determine the AW of retaining the tester one more year and then replacing...

Q: The annual worth values for a defender, which can be replaced

The annual worth values for a defender, which can be replaced with a similar used asset, and a challenger are estimated. The defender should be replaced: (a) Now (b) 1 year from now (c) 2 years from n...

Q: In a replacement study, the correct value to use when determining

In a replacement study, the correct value to use when determining the purchase price of the challenger is: (a) Its first cost when it was purchased (b) Its first cost minus the trade-in value of the d...

Q: What values of MARR should the engineer use to determine the

What values of MARR should the engineer use to determine the better financing plan?

Q: A milling machine with enhanced CNC controls that allow for high-

A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts was purchased 2 years ago for $195,000. The company wants to purchase a recently available faster mo...

Q: The first cost of grading and spreading gravel on a short rural

The first cost of grading and spreading gravel on a short rural road is expected to be $700,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very...

Q: A permanent flood-control dam is expected to have an initial

A permanent flood-control dam is expected to have an initial cost of $2.8 million and an annual M&O cost of $20,000. In addition, minor reconstruction will be required every 5 years at a cost of $200,...

Q: For the two independent projects shown, determine which, if any

For the two independent projects shown, determine which, if any, should be funded at i = 10% per year using the B/C ratio method: (a) Fund neither (b) Fund X (c) Fund Y (d) Fund both X and Y

Q: The estimated first cost of a permanent national monument is $2

The estimated first cost of a permanent national monument is $2 million with annual benefits and disbenefits estimated at $360,000 and $42,000, respectively. The B/C ratio at 6% per year is closest to...

Q: Cost-effectiveness analysis (CEA) differs from benefit/cost

Cost-effectiveness analysis (CEA) differs from benefit/cost analysis (B/C) in that: (a) CEA cannot handle multiple alternatives (b) CEA compares alternatives on the basis of a specific outcome rather...