Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 11P
To determine

Calculate the present worth.

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Handheld fiber-optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If a base unit sells for $2950 and its variable cost is $2075, (a ) how many units must be sold each year for breakeven? (b ) what will the profit be for sales of 3000 units per year?
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To make an item inhouse, equipement costing $245,000 must be purchased. It will have a life of 4 years, an annual cost of $78,000, and each unit will cost $65 to manufacture. Buying the item externally will cost $100 per unit. At i = 15% per year, it is cheaper to make the item inhouse if the number produced per year is above units.

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Basics Of Engineering Economy

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