Solution Manual Engineering Economy 16th Edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

September 7, 2017 | Author: solutionsteam | Category: Kilowatt Hour, Cost–Benefit Analysis, Economies, Energy And Resource, Business
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Solution Manual Engineering Economy 16th Edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling engineering ec...


Solution Manual Engineering Economy 16th Edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling Instant download and all chapters Solution Manual Engineering Economy 16th Edition William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Solutions to Chapter 1 Problems

A Note To Instructors: Because of volatile energy prices in today's world, the instructor is encouraged to vary energy prices in affected problems (e.g. the price of a gallon of gasoline) plus and minus 50 percent and ask students to determine whether this range of prices changes the recommendation in the problem. This should make for stimulating inclass discussion of the results. 1-1 Because each pound of CO 2 has a penalty of $0.20, Savings = (15 gallons x $0.10/gallon) - (8 lb)($0.20/lb) = $1.34 If Stan can drive his car for less than $1.34/8 = $0.1675 per mile, he should make the trip. The cost of gasoline only for the trip is (8 miles ^ 25 miles/gallon)($3.90/gallon) = $1.25, but other costs of driving, such as insurance, maintenance, and depreciation, may also influence Stan’s decision. What is the cost of an accident, should Stan have one during his weekly trip to purchase less expensive gasoline? If Stan makes the trip weekly for a year, should this influence his decision?


1-2 Principle 1 would lead to numerous other means for launching payloads into space. For example, using private U.S. or foreign firms are other viable options. Principle 2 forces differences in costs and benefits of alternative launching methods to be identified and measured. Principle 3 establishes a consistent viewpoint to be utilized in the analysis of launching methods (e.g. the perspective of the U.S. government). Principle 4 reduces the costs and benefits identified by Principal 2 to a common unit of comparison, expressed in dollars (or other monetary units). Principal 5 ensures that no significant criteria in evaluating alternatives are overlooked. Principle 6 identifies risks associated with each alternative-- including them in the analysis is of critical importance. Principal 7 allows the analyst to determine how a good (or poor) decision was made and why. This should impact on subsequent decision making.


1-3 Cost per Watt-hour = $0.75/1.5 Watt-hours = $0.50 per Watt-hour At a cost of $0.50 per Watt-hour, it would cost (1,000)($0.50 per Watt-hour) = $500 per kilo Watthour for power from a single AAA battery. This is 5,000 times more costly than energy from your local utility. No wonder we turn off our battery operated devices when we're not using them!


1-4 At first glance, Tyler’s options seem to be: (1) immediately pay $803 to the owner of the other person’s car or (2) submit a claim to the insurance company. If Tyler keeps his Nissan for five more years (an assumption), the cost of option 2 is $500 + ($60 x 2 payments/year) x 5 years = $1,100. This amount is more than paying $803 out-of-pocket, so Tyler appears to have made the most economical choice. What we don’t know in this problem is the age and condition of the other person’s car. If we assume it’s a clunker, another option for Tyler is to offer to buy the other person’s car and fix it himself and then sell it over the internet. Or Tyler could donate the unrepaired (or repaired) car to his favorite charity.




15,000 miles per year / 25 mpg = 600 gallons per year of E20 Savings = 600 gallons per year ($4.00 - $3.37) = $378 per year

(b) Gasoline saved = 0.20 (600 gal/yr)(1,000,000 people) = 120 million gallons per year


1-6 The environmental impact on the villagers is unknown, but their spring and summer crop yields could be affected by more than normal snow melt. Let's assume this cost is $10 million. Then the total cost of the plan is $6 million (180 million rubles) plus $10 million and the plan is no longer cost-effective when this additional externality is considered.


1-7 There are numerous other options including a nuclear plant, a 100% gas-fired plant and a windmill bank at a nearby mountain pass. Also, solar farms are becoming more cost competitive nowadays.


1-8 Increased lifetime earnings of a college graduate = $1,200,000(0.75) = $900,000


1-9 Strategy 1: Change oil every 3,000 miles. Cost = (15,000/3,000)($30) = $150 / year Strategy 2: Change oil every 5,000 miles. Cost = (15,000/5,000)($30) = $90 / year Savings = $60 per year


1-10 In six months you will spend approximately (180)(2)($ 1.15) = $414 on bottled water. The cost of the filter is $60, so you will save $354 every six months. This amounts to $708 over a year, and you don't need to bother recycling all those plastic bottles! An up-front expenditure of $60 can indeed save a lot of money each year.


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