Engineering Fundamentals: An Introduction to Engineering, 4th ed.c

680 Chapter 20 Engineering Economics

10

$1000

$2000 $2000

021 3456789

$3000

Problem 20.15

Problem 20.16^10

$1000

$2000

021 3456789

$3000

20.18.What are the equivalent present worth, annual worth,

and future worth of the cash flow given in the accom-

panying figure? Assumei8%.

20.19.You are to consider the following projects. Which proj-

ect would you approve if each project creates the same

income? Assumei8% and a period of 15 years.

Project X Project Y

Initial cost $55,000 $80,000

Annual operating cost $15,000 $10,000

Annual maintenance cost $6,000 $4,000

Salvage value at the end

of 15 years $10,000 $15,000

Criteria Motor X Motor Y

Expected useful life 5 years 5 years

Initial cost $300 $400

Efficiency at the 0.75 0.85

operating point

Estimated $12 per year $10 per year

maintenance cost

10

$2000

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$5000

$8000

$5000

Problem 20.17

20.15.What is the equivalent present worth of the

cash flow given in the accompanying figure? Assume

i8%.

20.16.What is equivalent future worth of the cash flow given

in the accompanying figure? Assumei8%.

20.17.What is the equivalent annual worth of the cash flow

given in the accompanying figure? Assumei8%.

20.20.In order to purchase a new car, imagine that you

recently have borrowed $15,000 from a bank that

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