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Engineering Economics Assignment 4

Walt Wallace Construction Enterprises is investigating purchasing one of two dump truck models. Model A costs $30,000 with expenses of $5,000 per year for 5 years. Model B costs $35,000 with expenses of $4,000 per year for 5 years. Using a 9% interest rate, the present worth analysis shows that Model A has a lower total cost and should be purchased. The assignment asks students to use present worth analysis to determine which of two alternatives should be selected at a 10% interest rate.

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Malik Zain
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131 views1 page

Engineering Economics Assignment 4

Walt Wallace Construction Enterprises is investigating purchasing one of two dump truck models. Model A costs $30,000 with expenses of $5,000 per year for 5 years. Model B costs $35,000 with expenses of $4,000 per year for 5 years. Using a 9% interest rate, the present worth analysis shows that Model A has a lower total cost and should be purchased. The assignment asks students to use present worth analysis to determine which of two alternatives should be selected at a 10% interest rate.

Uploaded by

Malik Zain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Regd.

Roll #:__________________________

WAH ENGINEERING COLLEGE


Bachelor of Science in Civil Engineering

Engineering Economics (GE-302)


5th Semester
Assignemnet-4
Date: 26th December, 2019

Date of Submission: 31st December, 2019 Total Marks: 20

Course Program Learning Domain


Learning Learning
Outcome Outcome
CLO-2 PLO-2 Cognitive 3

1. Walt Wallace Construction Enterprises is investigating the purchase of a


new dump truck. Interest is 9%. The cash flows for two likely models are as
follows:

Using present worth analysis, which truck should the firm buy, and why?
2. Using present worth analysis, determine which alternative should be selected
at 10% interest rate:

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