# Engineering Economy Sullivan

Topics: Costs, Motorcycle, Automobile Pages: 18 (3534 words) Published: March 1, 2014

http://solutionsmanualtestbankspdfs.blogspot.com/2011/10/engineering-economy-sullivanwicks_10.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
Virginia Polytechnic Institute
and State University

ELIN M. WICKS
Wicks and Associates, L.L.P.

Engineering Economy Sullivan Wicks Koelling 15th Edition Solutions Manual

C. PATRICK KOELLING
Virginia Polytechnic Institute
and State University

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 inclass 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 × 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 (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)

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