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Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick.

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Presentation on theme: "Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick."— Presentation transcript:

1 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

2 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

3 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

4 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

5 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling TABLE 6-1 Comparison of Four Molding Presses, Using the PW, AW, and FW Methods to Minimize Total Costs

6 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-3 Spreadsheet Solution, Example 6-2

7 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

8 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

9 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling TABLE 6-2 Comparison of Four Molding Presses, Using the PW, AW, and FW Methods to Maximize Overall Profitability

10 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

11 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-4 Spreadsheet Solution, Example 6-3

12 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

13 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling TABLE 6-3 Comparison of Five Acceptable Investment Alternatives Using the IRR Method (Example 6-4)

14 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

15 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

16 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

17 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling TABLE 6-4 Comparison of Four Cost (Design) Alternatives Using the IRR and PW Methods with Incremental Analysis (Example 6-5)

18 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-7 Representation of Capital Investment Increments and IRR on Increments Considered in Selecting Design 3 (D3) in Example 6-5

19 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

20 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-8 Spreadsheet Solution, Example 6-5

21 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

22 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling TABLE 6-5 Comparison of Three Mutually Exclusive Alternatives Using the ERR Method (Example 6-6)

23 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

24 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-9 Illustration of Repeatability Assumption (Example 6-7) and Coterminated Assumption (Example 6-8)

25 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

26 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-10 Spreadsheet Solution, Example 6-7

27 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

28 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

29 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

30 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-11 Spreadsheet Solution, Example 6-10

31 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

32 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

33 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

34 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling Figure 6-12 Cash-Flow Diagrams for the Pump Models Being Compared in Example 6-11

35 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

36 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

37 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

38 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

39 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

40 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling

41 Copyright ©2012, ©2009 by Pearson Education, Inc. All rights reserved. Engineering Economy, Fifteenth Edition William G. Sullivan Elin M. Wicks C. Patrick Koelling


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