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How to Ace Engineering Economy with the Sullivan 15th Edition Solutions Manualrar



Engineering Economy Sullivan 15th Edition Solutions Manualrar: A Comprehensive Guide




If you are an engineering student or a professional engineer, you probably know how important engineering economy is. Engineering economy is the discipline that deals with the evaluation of the costs and benefits of engineering projects, products, and systems. It helps engineers to make rational decisions based on economic criteria, such as profitability, feasibility, sustainability, and efficiency.




Engineering Economy Sullivan 15th Edition Solutions Manualrar


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However, engineering economy is not an easy subject to master. It requires a solid understanding of the basic concepts, methods, and techniques of economic analysis, as well as the ability to apply them to various engineering problems. That's why many engineering students and professionals rely on textbooks and solutions manuals to learn and practice engineering economy.


One of the most popular and widely used textbooks for engineering economy is Engineering Economy by William G. Sullivan, Elin M. Wicks, C. Patrick Koelling, and James T. Luxhoj. This book provides a comprehensive coverage of the principles and applications of engineering economy, with numerous examples, exercises, case studies, and online resources. The book also comes with a solutions manual that contains detailed solutions to all the end-of-chapter problems in the book.


However, there is a catch. The solutions manual is not available for free. You have to purchase it separately from the publisher or from other sources. Moreover, the solutions manual is not in a convenient format. It is in a rar file that you have to extract and open with a specific software. This can be a hassle for some students and professionals who want to access the solutions manual quickly and easily.


That's why we have created this comprehensive guide for you. In this guide, we will tell you everything you need to know about engineering economy, the Sullivan 15th edition solutions manualrar, and how to use it effectively. We will also show you where to find and download the solutions manualrar for free, how to study and learn engineering economy with it, and what are some common mistakes and pitfalls to avoid in engineering economy. By the end of this guide, you will be able to master engineering economy with confidence and ease.


What is Engineering Economy and Why is it Important?




Engineering economy is a branch of economics that deals with the analysis of the costs and benefits of engineering projects, products, and systems. It helps engineers to compare different alternatives based on their economic merits, such as present worth, annual worth, rate of return, payback period, benefit-cost ratio, break-even point, etc.


Engineering economy is important because it helps engineers to make rational decisions that maximize the value of their engineering endeavors. Engineering economy helps engineers to:



  • Evaluate the feasibility and profitability of engineering projects



  • Select the best alternative among competing options



  • Optimize the design and operation of engineering systems



  • Minimize the costs and risks of engineering activities



  • Enhance the sustainability and efficiency of engineering outcomes



Engineering economy is also important because it helps engineers to communicate and justify their decisions to other stakeholders, such as managers, investors, customers, regulators, etc. Engineering economy helps engineers to:



  • Present their engineering proposals in a clear and convincing manner



  • Support their engineering recommendations with sound economic analysis



  • Demonstrate their engineering competence and professionalism



  • Align their engineering goals with the organizational and societal objectives



  • Adapt their engineering solutions to the changing market and environmental conditions



The Basic Concepts of Engineering Economy




To understand and apply engineering economy, you need to know some basic concepts that are essential for economic analysis. These concepts include:


Time Value of Money




The time value of money is the idea that money has different values at different points in time. This is because money can earn interest over time, or lose value due to inflation. Therefore, a dollar today is worth more than a dollar in the future, and vice versa.


To compare the values of money at different points in time, you need to use a common basis, such as the present value or the future value. The present value (PV) is the value of money today, while the future value (FV) is the value of money at some point in the future. The relationship between the PV and the FV is given by the following formula:


FV = PV(1 + i)


where i is the interest rate per period, and n is the number of periods.


You can also use the formula to find the PV given the FV, by rearranging it as follows:


PV = FV/(1 + i)


Cash Flow




A cash flow is a series of payments or receipts that occur over time. A cash flow can be positive or negative, depending on whether it is an inflow or an outflow of money. A cash flow can also be uniform or non-uniform, depending on whether it has equal or unequal amounts in each period.


To analyze a cash flow, you need to use a cash flow diagram, which is a graphical representation of the cash flow over time. A cash flow diagram consists of a horizontal line that represents time, and vertical arrows that represent the cash flows. An upward arrow indicates a positive cash flow (inflow), while a downward arrow indicates a negative cash flow (outflow).


For example, the following cash flow diagram shows a uniform series of positive cash flows of $1000 per year for 5 years, starting from year 1.


+1000 ^ +1000 ^ +1000 ^ +1000 ^ +1000 ^ --+------------------------+------------------------+------------------------+------------------------+------------------------+-->


0 1 2 3 4 5 Time (years)


Interest Rate




An interest rate is a percentage that represents the cost or benefit of borrowing or lending money over time. An interest rate can be simple or compound, depending on how it is calculated. A simple interest rate is calculated based on the initial principal amount only, while a compound interest rate is calculated based on the accumulated amount including interest.


For example, if you borrow $1000 at a simple interest rate of 10% per year for 5 years, you will pay back $1500 at the end of the 5th year. The interest amount is $500 ($1000 x 10% x 5).


If you borrow $1000 at a compound interest rate of 10% per year for 5 years, you will pay back $1610.51 at the end of the 5th year. The interest amount is $610.51 ($1000 x (1 + 10%) - $1000).


You can see that compound interest results in a higher amount than simple interest, because it takes into account the interest earned on interest.


Discount Rate




A discount rate can be nominal or effective, depending on how it is compounded. A nominal discount rate is compounded based on a certain frequency, such as annually, semiannually, quarterly, monthly, etc. An effective discount rate is compounded continuously, and it is equivalent to the nominal discount rate with the same frequency.


For example, if you have a nominal discount rate of 12% per year compounded semiannually, you can find the effective discount rate by using the following formula:


Effective discount rate = (1 + Nominal discount rate / Frequency) - 1


Effective discount rate = (1 + 0.12 / 2) - 1


Effective discount rate = 0.1236 or 12.36%


Equivalent Annual Worth




An equivalent annual worth (EAW) is a uniform series of cash flows that has the same present value as a non-uniform series of cash flows. An EAW is useful for comparing different alternatives that have different lives or durations. To find the EAW of a cash flow, you need to use the following formula:


EAW = PV(A/P, i, n)


where A/P is the capital recovery factor, i is the interest rate or discount rate, and n is the number of periods.


For example, if you have a cash flow of $5000 in year 1 and $8000 in year 2, and the interest rate is 10%, you can find the EAW of the cash flow by using the following steps:



  • Find the PV of the cash flow by adding the PV of each cash flow.



  • PV = $5000/(1 + 0.1) + $8000/(1 + 0.1)



  • PV = $4545.45 + $6611.57



  • PV = $11157.02



  • Find the EAW of the cash flow by multiplying the PV by the A/P factor.



  • EAW = $11157.02(A/P, 10%, 2)



  • EAW = $11157.02(0.57619)



  • EAW = $6429.67



This means that a uniform series of $6429.67 per year for 2 years has the same present value as the original cash flow.


The Methods and Techniques of Engineering Economy Analysis




To perform engineering economy analysis, you need to use some methods and techniques that help you to compare different alternatives based on their economic merits. These methods and techniques include:


Present Worth Analysis




A present worth analysis (PWA) is a method that compares different alternatives based on their present values. A PWA helps you to find the alternative that has the highest present value or the lowest present cost among all the alternatives.


To perform a PWA, you need to use the following steps:



  • Identify all the alternatives and their cash flows.



  • Select an interest rate or discount rate that reflects the minimum acceptable rate of return or opportunity cost.



  • Calculate the present value or present cost of each alternative by using the PV formula or a table.



  • Select the alternative that has the highest present value or the lowest present cost.



For example, if you have two alternatives for buying a car: A) buy a new car for $30,000 with an annual maintenance cost of $1000 for 5 years; B) buy a used car for $20,000 with an annual maintenance cost of $2000 for 5 years; and the interest rate is 10%, you can perform a PWA by using the following steps:



  • The alternatives and their cash flows are:



A: -30000 -1000(P/A, 10%, 5) B: -20000 -2000(P/A, 10%, 5)


  • The interest rate is 10%.



  • The present value or present cost of each alternative is:



A: -30000 -1000(3.7908) = -33790.8 B: -20000 -2000(3.7908) = -27581.6


  • The alternative that has the lowest present cost is B.



This means that buying a used car is more economical than buying a new car, based on the present worth analysis.


Annual Worth Analysis




An annual worth analysis (AWA) is a method that compares different alternatives based on their equivalent annual worths. An AWA helps you to find the alternative that has the highest equivalent annual worth or the lowest equivalent annual cost among all the alternatives.


To perform an AWA, you need to use the following steps:



  • Identify all the alternatives and their cash flows.



  • Select an interest rate or discount rate that reflects the minimum acceptable rate of return or opportunity cost.



  • Calculate the equivalent annual worth or equivalent annual cost of each alternative by using the EAW formula or a table.



  • Select the alternative that has the highest equivalent annual worth or the lowest equivalent annual cost.



For example, if you have two alternatives for buying a car: A) buy a new car for $30,000 with an annual maintenance cost of $1000 for 5 years; B) buy a used car for $20,000 with an annual maintenance cost of $2000 for 5 years; and the interest rate is 10%, you can perform an AWA by using the following steps:



  • The alternatives and their cash flows are:



A: -30000 -1000(P/A, 10%, 5) B: -20000 -2000(P/A, 10%, 5)


  • The interest rate is 10%.



  • The equivalent annual worth or equivalent annual cost of each alternative is:



A: (-30000 -1000(3.7908))(A/P, 10%, 5) = -8919.77 B: (-20000 -2000(3.7908))(A/P, 10%, 5) = -7286.21


  • The alternative that has the lowest equivalent annual cost is B.



This means that buying a used car is more economical than buying a new car, based on the annual worth analysis.


Rate of Return Analysis




A rate of return analysis (ROR) is a method that compares different alternatives based on their internal rates of return. An internal rate of return (IRR) is the interest rate that makes the present value or present cost of an alternative equal to zero. An ROR helps you to find the alternative that has the highest internal rate of return among all the alternatives.


To perform an ROR, you need to use the following steps:



  • Identify all the alternatives and their cash flows.



  • Select a minimum acceptable rate of return (MARR) that reflects the minimum acceptable rate of return or opportunity cost.



  • Calculate the internal rate of return of each alternative by using trial and error, interpolation, or a calculator.



  • Select the alternative that has the highest internal rate of return that is greater than or equal to the MARR.



For example, if you have two alternatives for buying a car: A) buy a new car for $30,000 with an annual maintenance cost of $1000 for 5 years; B) buy a used car for $20,000 with an annual maintenance cost of $2000 for 5 years; and the MARR is 10%, you can perform an ROR by using the following steps:



  • The alternatives and their cash flows are:



A: -30000 -1000(P/A, i, 5) B: -20000 -2000(P/A, i, 5)


  • The MARR is 10%.



  • The internal rate of return of each alternative is:



A: i = 11.18% B: i = 14.87%


  • The alternative that has the highest internal rate of return that is greater than or equal to the MARR is B.



This means that buying a used car is more economical than buying a new car, based on the rate of return analysis.


Benefit-Cost Analysis




present value or present worth of the benefits to the present value or present cost of the costs of an alternative. A BCA helps you to find the alternative that has the highest benefit-cost ratio among all the alternatives.


To perform a BCA, you need to use the following steps:



  • Identify all the alternatives and their cash flows.



  • Select an interest rate or discount rate that reflects the minimum acceptable rate of return or opportunity cost.



  • Calculate the present value or present worth of the benefits and the costs of each alternative by using the PV formula or a table.



  • Calculate the benefit-cost ratio of each alternative by dividing the present value or present worth of the benefits by the present value or present cost of the costs.



  • Select the alternative that has the highest benefit-cost ratio that is greater than or equal to one.



For example, if you have two alternatives for buying a car: A) buy a new car for $30,000 with an annual maintenance cost of $1000 for 5 years and an annual fuel saving of $2000 for 5 years; B) buy a used car for $20,000 with an annual maintenance cost of $2000 for 5 years and an annual fuel saving of $1000 for 5 years; and the interest rate is 10%, you can perform a BCA by using the following steps:



  • The alternatives and their cash flows are:



A: -30000 -1000(P/A, 10%, 5) + 2000(P/A, 10%, 5) B: -20000 -2000(P/A, 10%, 5) + 1000(P/A, 10%, 5)


  • The interest rate is 10%.



  • The present value or present worth of the benefits and the costs of each alternative is:



A: Benefits = 2000(3.7908) = 7581.6 Costs = -30000 -1000(3.7908) = -33790.8 B: Benefits = 1000(3.7908) = 3790.8 Costs = -20000 -2000(3.7908) = -27581.6


  • The benefit-cost ratio of each alternative is:



A: BCR = 7581.6 / (-33790.8) = -0.2244 B: BCR = 3790.8 / (-27581.6) = -0.1374


  • The alternative that has the highest benefit-cost ratio that is greater than or equal to one is none.



This means that none of the alternatives is economical, based on the benefit-cost analysis.


What is the Sullivan 15th Edition Solutions Manualrar and How to Use it?




The Sullivan 15th edition solutions manualrar is a file that contains detailed solutions to all the end-of-chapter problems in the textbook Engineering Economy by William G. Sullivan, Elin M. Wicks, C. Patrick Koelling, and James T. Luxhoj. The solutions manualrar is a supplementary material that helps students and professionals to check their answers, understand their mistakes, and improve their skills in engineering economy.


The solutions manualrar is not available for free. You have to purchase it separately from the publisher or from other sources. Moreover, the solutions manualrar is not in a convenient format. It is in a rar file that you have to extract and open with a specific software. This can be a hassle for some students and professionals who want to access the solutions manual quickly and easily.


To use the solutions manualrar effectively, you need to follow these steps:



  • Download and install a software that can extract and open rar files, such as WinRAR or 7-Zip.



  • Download and save the solutions manualrar file from a reliable source, such as the publisher's website or an online platform.



  • Right-click on the solutions manualrar file and select "Extract here" or "Extract to" option.



  • Open the extracted folder and find the solutions manual pdf file.



  • Open the solutions manual pdf file with a pdf reader software, such as Adobe Acrobat or Foxit Reader.



  • Find the solution to the problem that you are looking for by using the table of contents, the index, or the search function.



  • Compare your answer with the solution and learn from it.



The Features and Benefits of the Sullivan 15th Edition Solutions Manualrar




The Sullivan 15th edition solutions manualrar has many features and benefits that make it a valuable resource for learning and practicing engineering economy. Some of these features and benefits are:


The Solutions Manualrar is Comprehensive




The solutions manualrar covers all the end-of-chapter problems in the textbook, which are organized by chapter and section. The solutions manualrar provides detailed and step-by-step solutions to each problem, with clear explanations, formulas, calculations, diagrams, tables, graphs, etc. The solutions manualrar also provides answers to the multiple-choice questions, true-false questions, and review questions in the textbook.


The Solutions Manualrar is Accurate




The solutions manualrar is written by the authors of the textbook, who are experts in engineering economy. The solutions manualrar is checked and verified by the publisher and other reviewers for accuracy and consistency. The solutions manualrar follows the same notation, terminology, conventions, and assumptions as the textbook. The solutions manualrar also reflects the latest updates and revisions in the textbook.


The Solutions Manualrar is Easy to Use




The solutions manualrar is design


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