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Technological Technological Institute of the Philippines College of Engineering and Architecture Department of Chemical Engineering ASSIGNMENT # 01 – PRESENT ECONOMY EECO 013 – Engineering Economy Solve the following Problems: 1. A cement grindin grinding g mill “A” with a capacity capacity of 50 tons per hour utilizes utilizes forged forged steel grinding balls costing ₱ 12,000 per ton, which have a wear rate of 100 grams per ton cement milled. milled. Another cement mill “B” “B” of same capacity uses high high chrome steel grinding grinding balls costing costing ₱ 30,000 30,000 per ton with wear rate of 10 grams per ton cement cement milled. milled. Determ Determine ine by calcu calculat lation ion the more more econom economica icall grind grinding ing mill, mill, considering other factors to be the same. 2. Seawater contains 2.1 pounds pounds of magnesium magnesium per ton. ton. By using using the processing method A, 85% of the metal can be recovered, at a cost of ₱ 3.25 per ton of water pumped pumped and processe processed. d. If process process B is used, only 70% of the available available metal metal is recovered, at a cost cost of only ₱ 2.60 per ton of of water pump and processed. processed. The two processes are are substantially equal equal as to investment investment costs and time time requirements. If the extracted material can be sold for ₱ 2.40 per pound, which processing method should should be used? At what selling selling price for the metal metal would the two processes processes be equally economical? 3. A building building contractor contractor is faced with the problem of possibly possibly paying paying liquidated liquidated dama damage ges s of ₱ 2,00 2,000 0 per per day day for for the the dela delay y in the the comp comple leti tion on of his his work work in accordance with with a contract. contract. The facts or data data are the following: following: • # of days left on the contract – 30 days • At present, present, the working working force force is 40 skilled skilled workers workers with a daily wage wage of ₱ 40.00 each, and 20 unskilled workers with daily wage of ₱ 32.00 each • The daily wage wage is based on an an 8-hour day’s work work • If he maintains maintains the present present number number of men, he will finish finish the work in 50 days • Overtime rate is 25% more than than the regular rate Analyze the following cases: Case I – if he allows the present working force to work overtime of two hours a day, in how many days will he finish the work? How much are his savings or losses? Case II – if the contractor put additional men (maintaining the ratio of two skilled workers to one unskilled worker) in order to finish the work on time, how many will he add? Consider no overtime overtime work. How much are his savings savings or losses? Case III – should the contractor allow overtime work of two hours a day, how many men will he add in order order to finish the work work on time? How much are his savings savings or losses?
