ENGINEERING ECONOMY
FIFTEENTH EDITION
Solutions Manual
WILLIAM G. SULLIVAN ELIN M. WICKS C. PATRICK KOELLING
, 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 in-
class 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
,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
, 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
FIFTEENTH EDITION
Solutions Manual
WILLIAM G. SULLIVAN ELIN M. WICKS C. PATRICK KOELLING
, 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 in-
class 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
,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
, 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
