Académique Documents
Professionnel Documents
Culture Documents
Indexes can be created for a single item or for multiple items (eqs. 3-
1, 3-2).
(i) Calculate a weighted index for the price of a kg of SMR in 2014. (4 marks)
(ii) Calculate the corresponding 2015 prices of SMR from 2014 if 218 is the index
value in 2015. (6 marks)
Price (sen / kg ) in Year
SMR
2012 2013 2014
SMR CV 1088 919 753
SMR L 1046 832 696
SMR 5 974 794 579
Q3 (b) Cost for a generator set of 100-KW was RM35,000 ten years ago while
the cost index for this generator was 187 and is now 194 with the cost capacity
factor 0.75. The EE team is considering a 240-KW and 300-KW units of the same
general design to power a small-medium isolated plant. Both models require an
additional pre-compressor, which currently costs RM22,000.
CA1 = CB(SA/SB)X
= 36,310.16(240-KW/100-KW) 0.75
= RM 70,014.27
TC = 70,014.27 + 22,000
= RM 92,014.27 ................................................(6 marks)
Solution:
CA2 = CB(SA/SB)X
= 36,310.16(300-KW/100-KW) 0.75
= RM 82,769.27
TC = 82,769.27 + 22,000
= RM 104,769.27 ...........................................(6 marks)
Determine:
(i) The number of engineering hours needed to design the eight and sixteenth
tower using a 95% learning curve. (5 marks)
(iii) The estimated cumulative average hours required to produce the first five
tower designs (5 marks)
Copyright ©2012 by Pearson Education, Inc.
Engineering Economy, Fifteenth Edition
Upper Saddle River, New Jersey 07458
By William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling
All rights reserved.
SOLUTION:
K = 123 hours
s = 0.95 (95% learning curve)
n = (log 0.95) / (log 2) = -0.074 ........................................... (1 marks)
Z8 = 123(8)-0.074 = 105.46 hours ......................................... (2 marks)
Z16 = 123(16)-0.074 = 100.18 hours ......................................... (2 marks)