Technological Institute of the Philippines College of Engineering and Architecture Department of Chemical Engineering ASSIGNMENT # 01 PRESENT ECONOMY EECO

O 013 Engineering Economy Solve the following Problems: 1. A cement grinding mill A with a capacity of 50 tons per hour utilizes forged steel grinding balls costing 12,000 per ton, which have a wear rate of 100 grams per ton cement milled. Another cement mill B of same capacity uses high chrome steel grinding balls costing 30,000 per ton with wear rate of 10 grams per ton cement milled. Determine by calculation the more economical grinding mill, considering other factors to be the same. 2. Seawater contains 2.1 pounds of magnesium per ton. By using the processing method A, 85% of the metal can be recovered, at a cost of 3.25 per ton of water pumped and processed. If process B is used, only 70% of the available metal is recovered, at a cost of only 2.60 per ton of water pump and processed. The two processes are substantially equal as to investment costs and time requirements. If the extracted material can be sold for 2.40 per pound, which processing method should be used? At what selling price for the metal would the two processes be equally economical? 3. A building contractor is faced with the problem of possibly paying liquidated damages of 2,000 per day for the delay in the completion of his work in accordance with a contract. The facts or data are the following: # of days left on the contract 30 days At present, the working force is 40 skilled workers with a daily wage of 40.00 each, and 20 unskilled workers with daily wage of 32.00 each The daily wage is based on an 8-hour days work If he maintains the present number of men, he will finish the work in 50 days Overtime rate is 25% more 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 work. How much are his savings or losses? Case III should the contractor allow overtime work of two hours a day, how many men will he add in order to finish the work on time? How much are his savings or losses?