Department of Mechanical Engineering

Engineering Economics (Fall-2019)

Quiz # 4 (A)

Marks= 10 +10=20

Q-1 Konica Minolta plans to sell a copier that prints documents on both sides simultaneously,
cutting in half the time it takes to complete big commercial jobs. The costs associated with
producing chemically treated vinyl rollers and fiber-impregnated rubber rollers are shown
below. Determine which of the two types should be selected by calculating the rate of return
on the incremental investment. Assume the company’s MARR is 21% per year

Q-2 From the following estimates, determine the B/C ratio for a project that has a 20-year life.
Use an interest rate of 8% per year

Important Engineering Economics Formulae

B/C=(B-D)/C