Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 30

The Tiger Construction Company purchased its current bulldozer (a Caterpillar D8H) and placed it in service six years ago. Since the purchase of the Caterpillar, new technology has produced changes in machines resulting in an increase in productivity of approximately 20%. The Caterpillar worked in a system with a fixed (required) production level to maintain overall system productivity. As the Caterpillar aged and logged more downtime, more hours had to be scheduled to maintain the required production. Tiger is considering purchasing a new bulldozer (a Komatsu K80A) to replace the Caterpillar. Table contains data which has been collected by Tiger's civil engineer.
(a) A civil engineer notices that both machines have different working hours and hourly production capacities. To compare the different units of capacity, the engineer needs to devise a combined index that reflects each machine's productivity as well as actual operating hours. Develop such a combined productivity index for each period.
(b) Adjust the operating and maintenance costs by the index you have come up with.
(c) Compare the two alternatives. Should the defender be replaced now
(d) If the following price indices were estimated for the next five project years, should the defender be replaced now
TABLE ST 14.4