Engineering Economy with Social and Global Implications (EGN3615), economics homework help

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cbv1234

Economics

University of South Florida

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I have about 15 questions, and I need you to help me to answer them. The course name is Engineering Economy with Social and Global Implications (EGN3615). I will upload the questions and sample of the answers. PLease, i want you to answer them in Excel.


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Chapter 1 1-2 (a) Yes. Selecting a hybrid versus a traditional combustion engine has important money and tax consequences, so it would be suitable for engineering economic analysis. (b) Yes. This situation involves important economic and social consequences. Some might argue that the social consequences are more important than the economics. (c) No.There probably are a variety of considerations much more important than the economics. (d) No. Picking a career on an economic basis sounds terrible. (e) Yes. Some financial factors that could be considered include the loan amount and interest rate, your starting salary level, the amount of time your graduation is delayed and the impact of the delay on lifetime earnings. However, a nonfinancial factors that should not be overlooked is the impact of working on academic performance that could ultimately impact your chance of getting a job and increase your starting salary. 1-3 Of the three alternatives, the $150,000 investment problem is most suitable for economic analysis. There is not enough data to figure out how to proceed, but if the “desirable interest rate” were 9%, then foregoing it for one week would mean an immediate loss of:1/52 (0.09) = 0.0017= 0.17% It would take over a year at 0.15% more to equal the 0.17% foregone now. The sandwich shop is suitable for economic analysis. Compared to the investment problem it is, of course, trivial. Joe’s problem is a real problem with serious economic consequences. The difficulty may be in figuring out what one gains if he pays for the fender damage, instead of having the insurance company pay for it. 1-10 While there might be a lot of disagreement on the “correct” answer, only (c) the problem addressing car insurance represents a substantial amount of money and a situation where money might be the primary basis for choosing between alternatives. 1-18 (a) (b) (c) (d) Maximize Minimize Maximize Minimize the difference between output and input. input. the difference between output and input. input. 1-24 The remaining costs for the year are: (a) and (b) Alternatives and their costs: 1. To stay in the dormitory the rest of the year Food: 8 months at $500/month = $4000 2. To stay in the dormitory the balance of the first semester; apartment for second semester (consider person paying $2,500 for second semester) Housing: 4½ months × $400 apartment − $2,500 dorm = -$700 Food: 3½ months × $500 + 4½ × $450 = $3,775 Total = $3,075 3. Move into an apartment now Housing: 8 months × $400apartment – 8 × $300dorm = $800 Food: 8 months × $450 = $3600 Total= $4,400 (c) He should stay in the dormitory for the rest of this semester and then move into an apartment. This alternative (#2) is the lowest cost. 1-59 The car can be driven: 28 mpg*16 gal = 448 miles Three options exist: 1. Return it with a full gas tank. So we must pay for gas to fill it up at market rate of $3.95/gallon. 2. Return it without filling it and pay $5.45/gallon. So company fills the tank and we pay their rate of $5.45/gallon. 3. Accept a fixed price of $50 for the gas a) Drive 150 miles: Consumed: 150 miles/28 mpg = 5.357 gallons Option 1 Cost: 5.357 gal * $3.95/gal = $21.16 Option 2 Cost: 5.357 gal * $5.45/gal = $29.20 Option 3 Cost: $50 Option 1 is best. b) Drive 300 miles: Consumed: 300 miles/28 mpg = 10.714 gallons Option 1 Cost: 10.714 gal * $3.95/gal = $42.32 Option 2 Cost: 10.714 gal * $5.45/gal = $58.39 Option 3 Cost: $50 Option 1 is best. c) Drive 400 miles: Consumed: 400 miles/28 mpg = 14.286 gallons Option 1 Cost: 14.286 gal * $3.95/gal = $56.43 Option 2 Cost: 14.286 gal * $5.45/gal = $77.86 Option 3 Cost: $50 Option 3 is best. d) Considering our time option 1 in each case. Drive 150 miles: Option Drive 300 miles: Option Drive 400 miles: Option to fill 15 min at $12/hr will add $3 to the cost of 1 Cost is $24.16– Option 1 remains the best option 1 Cost is $45.32 – Option 1 remains the best option 1 Cost is $59.43 – Option 3 remains the best option 1-60 Total Cost = Cost of Gas + Cost of Time Spent on the Road = (Miles Driven/Miles per gal)(Cost/gal) + (Miles Driven/Speed)*(Cost/hr) = (Miles Driven)[ (Cost/gal)/(Miles per gal) + (Cost/hr)/(Speed) ] a) Cost (60 mph) = (500 miles) [($3/gal)/(24mpg)+($18/hr)/(60mph)] = $212.50 Cost (70 mph) = (500 miles) [($3/gal)/(20mpg)+($18/hr)/(70mph)] = $203.57 Cost of Cost of $/gal $/hr Speed MPG Gas Total Cost Time 3 18 60 24 $62.50 $150.00 $212.50 3 18 70 20 $75.00 $128.57 $203.57 4 12 60 24 $83.33 $100.00 $183.33 4 12 70 20 $100.00 $85.71 $185.71 5 9 60 24 $104.17 $75.00 $179.17 5 9 70 20 $125.00 $64.29 $189.29 a) b) c) d) Driving at Driving at Driving at Worksheets 70 mph is cheaper 60 mph is cheaper 60 mph is cheaper are below. 1-64 To maximize net income, Jim should not advertise and charge $72 per night. Chapter 2 2-2 (a) 500 parts Average cost = $13 Marginal cost = $13 (b) 1500 parts Average cost = ((1000)($13) + (500)($12)) / 1500 = $ 12.67 Marginal cost = $12 (c) 2500 parts Average cost = ((1000)($13) + (1500)($12)) / 2500 = $12.40 Marginal cost = $12 (d) 3500 parts Average cost = ((1000)($13) + (2000)($12) + 500($11)) / 3500 = $12.14 Marginal cost = $11 2-4 Unit Manufacturing Cost (a) Daytime Shift = ($2,000,000 + $9,109,000)/23,000 = $483/unit (b) Two Shifts = [($2,400,000 + (1 + 1.25) ($9,109,000)]/46,000 = $497.72/unit Second shift increases unit cost. 2-8 The basic cost of production can be expressed as: Cost = Regular Time Production Cost + Overtime Production Cost Regular time production cost = 90 units/hr Overtime production = 90*(0.95) = 85.5 units/hr So, the hour required to produce the specified number of units can be determined as: #units/(90 units/hr) = # hrs of production required. If this time is greater than 8 we will have overtime, if less than 6 we will use 6 hours. Over Time hrs Worked Cost Reg Time Cost Ovr Time Total Cost Average Cost/Unit Marginal Cost/Uni t Units to Produce Hours Required Reg Hrs Worked (a) 450 (b) 600 5.00 6.67 6.00 6.67 0.00 0.00 $27,000 $30,000 $0 $0 $27,000 $30,000 $60.00 $50.00 $0 $50.00 (c) 720 (d) 900 8.00 10.00 8.00 8.00 0.00 2.11 $36,000 $36,000 $0 $14,211 $36,000 $50,211 $50.00 $55.79 $78.95 $78.95 Average cost/unit = Total Cost/units produced. a) Marginal Cost = $0 since there is extra capacity in production. Only 5 of the 6 available hours have been used. So, no extra cost to produce another unit. b) Marginal cost = ($4,500/hr)/(90unit/hr) = $50/unit c) Since the 720 units required a total of 8 hours, the next unit will require the use of overtime. Marginal Cost = ($4,500/hr)(1+0.5)/(90*0.95unit/hr) = $78.95/unit d) We are in overtime area at this level, so marginal cost is same as part (c), $78.95/unit. 2-14 x = no. of maps dispensed per year a) Fixed Cost (I) = $1,000 b) Fixed Cost (II) = $5,000 c) Variable Costs (I) = 0.900 d) Variable Costs (II) = 0.100 e) Set Total Cost (I) = Total Cost (II) $1,000 + 0.90 x= $5,000 + 0.10 x x = $4,000/$0.80/map = 5,000 maps dispensed per year. Students can visually verify this from the figure. f) System I is recommended if the annual need for maps is 5,000 h) Average Cost @ 3,000 maps: TC(I) = (0.9) (3.0) + 1.0 = 3.7/3.0 = $1.23 per map TC(II) = (0.1) (3.0) + 5.0 = 5.3/3.0 = $1.77 per map Marginal Cost is the variable cost for each alternative, thus: Marginal Cost (I) = $0.90 per map Marginal Cost (II) = $0.10 per map 2-16 (a) x = number of visitors per year Breakeven when: Total Costs (Tugger) = Total Costs (Buzzer) $10,000 + $2.5 x = $4,000 + $4.00 x x = 4000 visitors is the breakeven quantity (b) See the figure below that plots costs as a function of the number of visitors: X 0 4,000 8,000 2-34 Y1 (Tug) 10,000 20,000 30,000 Y2 (Buzz) 4,000 20,000 36,000 a) $7000 The book cost results strictly from depreciation and can be more or less than the market value. b) $4000 The pump could be sold for this amount. If the pump is used instead, then it would be viewed as an opportunity foregone. c) $6000 – 4000 – 500 = $1500 cheaper than buying the brass pump. 2-41 Cost (total) = Cost (paint) + Cost (labor) + Cost (fixed) Number of Cans Needed = (6,000 ft2/300 ft2/can) (2 coats) = 40 cans Cost (paint) = (10 cans) $15 = $150.00 = (15 cans) $12.50 = $187.50 = (15 cans) $12 = $180.00 Total Cost = $517.50 Cost (labor) = (5 painters) (8hrs/day) (4.5 days/job) ($18/hr*painter)= $3,240 Cost (total) = $517.50 + $3,240+ $1,200 = $4,957.50 = $4,958 2-42 a) Unit Cost = $250,000/2,000 = $125/ft2 b) i. If all items change proportionately, then: Total Cost = ($125/ft2) (4,000 ft2) = $500,000 b) ii.For items that change proportionately to the size increase we multiply by: 4,000/2,000 = 2.0 all the others stay the same. [See table below] Cost Item 1 2 3 4 5 6 7 8 2,000 ft2 House Cost ($250,000) (0.08) = $20,000 ($250,000) (0.15) = $37,500 ($250,000) (0.13) = $32,500 ($250,000) (0.12) = $30,000 ($250,000) (0.13) = $32,500 ($250,000) (0.10) = $25,000 ($250,000) (0.12) = $30,000 ($250,000) (0.17) = $42,500 Increase ×1 ×1 ×2 ×2 × 1.5 ×2 ×2 ×2 4,000 ft2 House Cost $20,000 $37,500 $65,000 $60,000 $48,750 $50,000 $60,000 $85,000 Total Cost = $426,250 2-46 CA/CB = IA/IB C50 YEARS AGO/CTODAY = AFCI50 YEARS AGO/AFCITODAY CTODAY = ($2,050/112) (55) = $1,007 2-47 ITODAY = (90/12) (100) = 750 CLAST YEAR= (600/750) (90) = $72 2-50 Scaling up cost: Cost of 4,500 g/hr centrifuge = (4,500/1,500)0.75 (40,000)= $91,180 Updating the cost: Cost of 4,500 model= $91,180 (300/120) = $227,950 2-56 Time for the first pillar is T10= 260 = T1 × 10log(0.75)/log(2.0) Solve for T1 = 676 person hours Time for the 20th pillar is T20 = 676 x 20log(0.75)/log(2.0)= 195 person hours 2-75 Engineering Economics -- Homework Format Instructions Do all your work below; use this as a text file or use the Excel functions if you need them. List each problem number and do the work here. Save this file to your computer as you work. When you are finished, go back to the Assignments page where you found this and open the Assignment. On this specific Assignment, you will find a section called “Assignment Materials.” Near the bottom of that section Browse for Local File. Again do your work, save it, and them use the above to attach it. Note although this course is largely following the schedule in the Syllabus there will be some date changes. Regard assignment, check the Syllabus (which will be updated) from time to time. Do your work here 1 .1 1 .2 1 .3 1 .12 1 .18 1 .28 1 .31 1 .42 a) open the Assignment. ear the bottom of that section is “Attach File” and a button to be some date changes. Regardless, if there is no posted H.W 1: Chapter 1 H.W 2 HW 2 Problems Homework 2 Chap 1 1
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Explanation & Answer

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Engineering Economics
a) I decided to buy food from a fast foods rather than cook at home.
b)I chose to take my sibling to college missing a days work.
c) I made up my mind to hand wash my clothes instead of taking them to the laundry.
d)I bought a new laptop with my savings.
e)I accepted to live with a friend for sometimes as he looks for a job

1-1b)

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a) I did not recognize the fact that cooking at home was cheaper compared to buying food.
b) I could have booked my sibling a train and work on the assignment I had to submit before deadline.
c) I did not recognize that taking my clothes to the laundry could have saved me some time on my busy sch
d)I could have invested the savings in the home ownership plan since I had another laptop.
e) I had the chance to rent the space to him or someone else and save the cash from renting the extra space
a) when selecting hybrid versus traditional cumbustion engine money and tax is involved, this makes is su
b) buying an automatic machine involves the cost of the machine and the amount in salaries to be done aw
e)This scenario involves some financial factors that could be considered including the loan amount and int
out of the three investments the $150.00 investment problem is the most suitable for economic analysis. T
It would then take a year at 0.15% more to equal 0.17% foregone now.
The sandwich shop is the most suitable for economic analysis as compared to the investment problem.
Joe's problem has serious economic consequences but a difficulty migh occur in figuring out what one gain
When Jill decides to buy a to get to the university she seems rational since apart from getting to the univer
Dons decision seemed rational since he was saving on costs when buying spark plugs which end up breaki
Joe's decision to do civil engineering because his friend is doing civil engineering is not rational, rationally
scenario a) Maximize the difference between output and input.
scenario b) Minimize input.
scenario c) Maximize the difference between output and input.
scenario d) Minimize input used.
one major problem I must adress in the next to years is leaving employment to come up with a start up com
I am going to save for the new start-up while still working and will involve my...

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