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Engineering economics questions 4&5
Question: Given the following data:  The asset price, P = 280,000  The salvage value at the end of year S(n...

Show transcribed image text Given the following data: The asset price, P = 280,000 The salvage value at the end of year S(n) = 200,000 – 40,000n The maintenance & operating cost in year t is m (t) = 20,000 – 40,000t Find the economic service life if the interest rate is 10% per year compounded annually. You have received an order for 200 specially made items. The estimated labor improvement rate is 20%. The number of hours to produce the first unit, T_1, is estimated to be 14 hours, labor costs average $20.00/hour, direct material cost average $100 per item, and overhead is 80% of direct materials costs. (a) Estimate labor cost to produce unit number 200. (b) Estimate the total costs to produce 200 units including labor, materials, and overhead. Materials cost experiences no learning.

Given the following data: The asset price, P = 280,000 The salvage value at the end of year S(n) = 200,000 – 40,000n The maintenance & operating cost in year t is m (t) = 20,000 – 40,000t Find the economic service life if the interest rate is 10% per year compounded annually. You have received an order for 200 specially made items. The estimated labor improvement rate is 20%. The number of hours to produce the first unit, T_1, is estimated to be 14 hours, labor costs average $20.00/hour, direct material cost average $100 per item, and overhead is 80% of direct materials costs. (a) Estimate labor cost to produce unit number 200. (b) Estimate the total costs to produce 200 units including labor, materials, and overhead. Materials cost experiences no learning.