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Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

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Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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sullivan-wicks.html

Name: Engineering Economy
Author: Sullivan Wicks Koelling
Edition: 15th
ISBN-10: 0132554909
Type: Solutions Manual

- The file contains solutions and questions to all chapters and all questions. All the files are
carefully checked and accuracy is ensured.

This is a sample chapter
ENGINEERING ECONOMY


FIFTEENTH EDITION








Solutions Manual












WILLIAM G. SULLIVAN
ELIN M. WICKS
C. PATRICK KOELLING
Virginia Polytechnic Institute
Wicks and Associates, L.L.P.
Virginia Polytechnic Institute
and State University
and State University
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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 in-
class discussion of the results.



1-1
Because each pound of CO2 has a penalty of $0.20,

Savings = (15 gallons $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)($3.00/gallon) = $0.96, 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
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
1-2
Other information needed includes total number of miles driven each year and the gas consumption
(miles per gallon) of the average delivery vehicle.































































2
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
1-3
Some non-monetary factors (attributes) that might be important are:
Safety
Reliability (from the viewpoint of user service)
Quality in terms of consumer expectations
Aesthetics (how it looks, and so on)
Patent considerations
























































3
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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 ($803 - $500) + $60 x 5 years = $603. This amount is less than
paying $803 out-of-pocket, so Tyler probably should have submitted an insurance claim. But if his
premiums go higher and higher each subsequent year (another assumption!), Tyler ought to pursue
option 1.

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.



















































4
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

1-5
(a) 15,000 miles per year / 25 mpg = 600 gallons per year of E20


Savings = 600 gallons per year ($3.00 - $2.55) = $270 per year



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



























































5
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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.




























































6
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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.































































7
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
1-8
Increased lifetime earnings of a college graduate = $1,200,000(0.75) = $900,000
































































8
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual
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




























































9
Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

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