Engineering Economy Chapter 5 Problem

Nama : Nandyto Widyanto

NPM : 1206253880

No. 5.2
a. The do nothing alternative means that the status quo should be maintained
The do nothing alternative is chosen if none of the alternatives are economically justified, then all of them can be rej

b. The do nothing alternative is not an option when the alternatives being evaluated are cost alternatives, which mea

No. 5.4
The difference between a revenue and a cost alternative is revenue alternative have cash inflows and outflows, whil

No. 5.6
Equal service can be satisfied by using a specified planning period or by using the least common multiple between t

No. 5.8
i

10%
Machine A

First cost
Annual operating cost
Life, years
Year
0
1
2
3
4
PW

No. 5.10
i

$42,000.00
$28,000.00
4

Machine A
Machine B
$(42,000.00)
$(28,000.00)
$(28,000.00)
$(28,000.00)
$(28,000.00)
$(130,756.23)

8%

$(51,000.00)
$(17,000.00)
$(17,000.00)
$(17,000.00)
$(17,000.00)
$(104,887.71)

PW=133839,24

Class A
Life, years
g
A1
PW
Select

Class B
5
6%
$30,000.00
$133,839.24

5
12%
$20,000.00
$99,710.07

30000

Class A stock

No. 5.12
i
Life, years

4%
12
No drains

Annual operating cost

PW

Corrugated pipe
$(21,000.00)
$4,000.00
$(18,501.61)

Cost
Salvage, cost
PW
Select

No. 5.14
i

0
$(1,500.00)
$(14,077.61)

No drains

10%
Gaseous chlorine
Life, years
Annual cost
Labor cost
Future cost

Dry chlorine

5
$(650.00)
$(800.00)
$(8,000.00)

Years
0
1
2
3
4
5
PW

Gaseous chlorine

Select

Dry chlorine

$$(1,450.00)
$(1,450.00)
$(1,450.00)
$(1,450.00)
$(1,450.00)
$13,496.64

5
$1,000.00
$1,900.00

Dry chlorine
0
$(2,900.00)
$(2,900.00)
$(2,900.00)
$(2,900.00)
$(2,900.00)
$10,993.28

No. 5.16
i

15%

Installation cost, $million

Pumping, operating, security, $million per year
Replacement of valves and appurtenances in year 25, $million
Expected life, years
Years

Land ($million)
Undersea ($million)
0
$(215.00)
$(350.00)
1
$(22.00)
$(2.00)
2
$(22.00)
$(2.00)
3
$(22.00)
$(2.00)
4
$(22.00)
$(2.00)
5
$(22.00)
$(2.00)
6
$(22.00)
$(2.00)
7
$(22.00)
$(2.00)
8
$(22.00)
$(2.00)
9
$(22.00)
$(2.00)
10
$(22.00)
$(2.00)
11
$(22.00)
$(2.00)
12
$(22.00)
$(2.00)
13
$(22.00)
$(2.00)
14
$(22.00)
$(2.00)
15
$(22.00)
$(2.00)
16
$(22.00)
$(2.00)
17
$(22.00)
$(2.00)
18
$(22.00)
$(2.00)
19
$(22.00)
$(2.00)
20
$(22.00)
$(2.00)
21
$(22.00)
$(2.00)
22
$(22.00)
$(2.00)
23
$(22.00)
$(2.00)
24
$(22.00)
$(2.00)
25
$(52.00)
$(72.00)
26
$(22.00)
$(2.00)
27
$(22.00)
$(2.00)
28
$(22.00)
$(2.00)
29
$(22.00)
$(2.00)
30
$(22.00)
$(2.00)
31
$(22.00)
$(2.00)
32
$(22.00)
$(2.00)
33
$(22.00)
$(2.00)

PW=362,44
0

215

PW=365,45
0

350

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(22.00)
$(362.44)

PW
Select

No. 5.18
i
Total cost

$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(2.00)
$(365.45)

Land route

10%
$60,000,000.00

Years

Plan A
Plan B
0
$5,000,000.00
1
$5,500,000.00
2
$5,500,000.00
3
$5,500,000.00
4
$5,500,000.00
5
$5,500,000.00
6
$5,500,000.00
7
$5,500,000.00
8
$5,500,000.00
9
$5,500,000.00
10
$5,500,000.00
PW (Cost)
$38,795,119.08
Select

No. 5.22
i

Plan A

8%

$5,000,000.00
$$25,000,000.00
$$$$$30,000,000.00
$$$$41,055,900.57

38795119.08
0

5000000

Size of the pond, acres

1 acre =
Total

110
43560 square feet
4791600
Plastic liner

Removal cost in 15 years

Total cost in 15 years
PW in 15 years
First cost
PW
Select

$500,000.00
$4,812,440.00
$1,517,081.79
$4,312,440.00
$5,829,521.79

10%
Land Application
Incineration
$(130,000.00)
$(95,000.00)
$25,000.00
3

$(900,000.00)
$(60,000.00)
$300,000.00
6

Land Application
Incineration
0
$(130,000.00)
1
$(95,000.00)
2
$(95,000.00)
3
$(200,000.00)
4
$(95,000.00)
5
$(95,000.00)
6
$(70,000.00)
$(608,525.97)

$(900,000.00)
$(60,000.00)
$(60,000.00)
$(60,000.00)
$(60,000.00)
$(60,000.00)
$240,000.00
$(991,973.46)

First cost
Annual operating cost
Salvage value
Life, years

Years

PW
Select
b)

0
0
0
$(10,541,520.00)
$10,541,520.00

Plastic liner

No. 5.24
i

a)

Rubberized elastomeric liner

Private disposal contract

g, each 2 years

20%

Years

Contract
0
1
2
3
4
5

$$(120,000.00)
$(120,000.00)
$(144,000.00)
$(144,000.00)
$(172,800.00)

$(172,800.00)
$(619,644.03)

PW

The selection changed, select land application

No. 5.26
i

15%
Robot X

First cost
Annual cost
Salvage value
Years

FW

Robot X
Robot Y
0
$(80,000.00)
1
$(30,000.00)
2
$(30,000.00)
3
$10,000.00
$185,845.00

Select

Robot Y
$80,000.00
$30,000.00
$40,000.00

$(97,000.00)
$(27,000.00)
$(27,000.00)
$23,000.00
$191,282.38

Robot X

No. 5.28
i

8%
P

First cost
Annual operating cost
Salvage value
Life, years
Years

P
0
1
2
3
4
5
6

FW
Select

$97,000.00
$27,000.00
$50,000.00

Q
$(23,000.00)
$(4,000.00)
$3,000.00
3

Q
$(23,000.00)
$(4,000.00)
$(4,000.00)
$(24,000.00)
$(4,000.00)
$(4,000.00)
$(1,000.00)
$88,036.07

Alternative Q

$(30,000.00)
$(2,500.00)
$(2,500.00)
$(2,500.00)
$(2,500.00)
$(2,500.00)
$(1,500.00)
$64,946.05

$(30,000.00)
$(2,500.00)
$1,000.00
6

No. 5.30
i

10%

Building cost
Razing cost

Old contract
New contract
$100,000,000.00
$1,300,000.00

Years

New contract

Old contract
0
1
2
3
4
5
6
7

$$$(1,300,000.00)
$(100,000,000.00)
$$$$$148,503,663.00

FW

The difference in FW

No. 5.32
F
n
i1
i2
A1
A2
a)
b)
c)

No. 5.34
a)

b)

$100,000,000.00
$1,300,000.00

$$(1,300,000.00)
$$$$$$(100,000,000.00)
$102,303,029.30
$46,200,633.70

$10,000.00
5
3%
8%
$1,883.55
$1,704.56
CC1
$(62,784.86)
CC2
$(21,307.06)
When money is earned at the 3% rate, it is necessary to start with more

A
i
CCc
Select
A
i
g
n

$(5,000,000.00)
12%
$(41,666,666.67)
The contractor option
$(5,000,000.00)
12%
2%
50

Pg
A
CCc
Select

$(49,534,330.86)
$5,964,758.85
$49,706,323.76
The groundwater option

No. 5.36
i
A
F
n
CC1
CC2
CCT

10%
$1,000.00
$5,000.00
4
$(10,000.00)
$(10,773.54)
$(20,773.54)

No. 5.38
i
CC1
A
CC2
F
n
CC3
CCT

6%
$(150,000.00)
$(5,000.00)
$(83,333.33)
$(20,000.00)
2
$17,799.93
$(215,533.40)

ed, then all of them can be rejected, and the DN alternative is selected

e cost alternatives, which means that one of them must be selected

ash inflows and outflows, while cost alternatives have only costs.

t common multiple between the lives of the alternatives.

Machine A
Machine B
$51,000.00
$17,000.00
4

42000
A = 28000
PW=?

Machine B
0

51000
A = 17000
PW=?
Class A

Class B
PW=99710,07

20000

No drains
PW=14077,61
1

10

11

12

A = 1500

Gaseous Chlorine

Dry Chlorine

PW=13496,64
0

8000

PW=10993,28
2

1450

Land

Undersea
-215
-22
-30
50

-350
-2
-70
50

Land Pipeline

25

47

22

48

49

22
52

Undersea Pipeline

25

47

48

2
72

49

Plan A

5500000

Plastic
5829571.79

12

13

14

4312440

Contract
$$(120,000.00)
$2

Contract
$$(120,000.00)
$(120,000.00)
$(120,000.00)
$(120,000.00)
$(120,000.00)
$(120,000.00)
$(522,631.28)

Land
608525.97

95000

95000

130000

200000

Contract
619644.03

120000
144000
172800

Robot X
40000
0

30000
80000

97000

185845

Alternative P

4000
23000

4000
24000

Old Contract
0

1300000
100000000

a)
0

1883.55

10000

1000
5000

PW=99710,07

Corrugated pipe
PW=18501,61

4000

10

21000

Dry Chlorine

PW=10993,28

2900

11

12

50

50

Plan B
41055900.57
9

10

5000000
25000000

Rubberized
10541520

15

26

27

4812440
10541520

Incineration
991973.46
25000
6

95000

600000
900000

172800

Robot Y
50000

27000

191282.38

Alternative Q

3000
6

4000

2500
30000

88036.07

New Contract
6

1300000
148503663

b)
0

1704.56

10000

30000000

10

28

29

30

Contract
522631.3
300000
6

120000

1000
6

64946.05

100000000

102303029.3