1-1. Stan Moneymaker needs 15 gallons of gasoline to top off his 1-14.
1-14. While studying for the engineering economy final exam, you
automobile’s gas tank. If he drives an extra eight miles (round
trip) to a gas station on the outskirts of town, Stan can save $0.10
per gallon on the price of gasoline. Suppose gasoline costs $3.90
per gallon and Stan’s car gets 25 mpg for in-town driving. Should
Stan make the trip to get less expensive gasoline? Each mile that
Stan drives creates one pound of carbon dioxide. Each pound of
CO2 has a cost impact of $0.02 on the environment. What other
factors (cost and otherwise) should Stan consider in his decision
making?
1-3. Atypical discounted price of a AAA battery is $0.75. It is designed
to provide 1.5 volts and 1.0 amps for about an hour. Now we
multiply volts and Amps to obtain power of 1.5 watts from the
battery. Thus, it costs $0.75 for 1.5 Watt-hours of energy. How
much would it cost to deliver one kilo Watt-hour? How does this
compare with the cost of energy from your local electric utility
at $0.10 per kilo Watt-hour?
1-5. Henry Ford’s Model T was originally designed and built to run on
ethanol. Today, ethanol (190-proof alcohol) can be produced
with domestic stills for about $0.85 per gallon. When blended
with gasoline costing $4.00 per gallon, a 20% ethanol and 80%
gasoline mixture costs $3.37 per gallon. Assume fuel
consumption at 25 mpg and engine performance in general are
not adversely affected with this 20–80 blend (called E20).
a. How much money can be saved for 15,000 miles of driving per
year?
b. How much gasoline per year is being converted if one million
people use the E20 fuel?
and two friends find yourselves craving a fresh pizza. You can’t
spare the time to pick up the pizza and must have it delivered.
“Pick-Up-Sticks” offers a 1-1/4-inch-thick (including toppings),
20-inch square pizza with your choice of two toppings for $15
plus 5% sales tax and a $1.50 delivery charge (no sales tax on
delivery charge). “Fred’s” offers the round, deep-dish Sasquatch,
which is 20 inches in diameter. It is 1-3/4 inches thick, includes
two toppings, and costs $17.25 plus 5% sales tax and free
delivery.
a. What is the problem in this situation? Please state it in an
explicit and precise manner.
b. Systematically apply the seven principles of engineering
economy (pp. 3–6) to the problem you have defined in Part
(a).
c. Assuming that your common unit of measure is dollars (i.e.,
cost), what is the better value for getting a pizza based on the
criterion of minimizing cost per unit of volume?
d. What other criteria might be used to select which pizza to
purchase?
1-16. Extended Learning Exercise.
Bad news: You have just wrecked your car! You need another car
immediately because you have decided that walking, riding a
bike, and taking a bus are not acceptable. An automobile
wholesaler offers you $2,000 for your wrecked car “as is.” Also,
your insurance company’s claims adjuster estimates that there
is $2,000 in damages to your car. Because you have collision
insurance with a $1,000 deductibility provision, the insurance
company mails you a check for $1,000. The odometer reading on
your wrecked car is 58,000 miles.

What should you do? Use the seven-step procedure from Table
1-1 to analyze your situation. Also, identify which principles
accompany each step.