Engineering Economic Analysis

Problems 293 SUMMARY In this chapter, we have looked at four new analysis techniques. PROBLEMS Future worth: When the comparison ...

294 OTHER ANALYSISTECHNIQUES 9-3 ComputeFfor the following diagram. 300 250 150 1 200 I 100 t 0-1-2-3-4-5 1 i=12% 8~nTG ~~FOO 7f ...

Problems 295 9-12 purchased $100 worth of stamps 10 years ago, and increased his pqrchases by $50 per year in each sub- sequent ...

-"" --- - ---- 296 OTHER ANALYSISTECHNIQUES 9-22 IPS COrp. will upgrade its package-labeling mac~nery. It costs $150,000 to buy ...

Problems 297 Cost. Uniform annual benefit A $800 142 C $150 33.5 B $300 60 9-32 An investor is considering buying some land for ...

(^298) OTHER ANALYSISTECHNIQUES 9-39 A project has the following costs and benefits. What is the payba~kperiod? Year Costs o $1 ...

JIll""""'"". Problems 299 9-48 Three mutually exclusive alternatives are being considered: At the end of its usefUl life, an alt ...

300 OTHERANALYSISTECHNIQUES newspaper vending machines cost $45 each. It is ex- pected that the annual revenue from selling the ...

.-...- Problems 301 it will cost $500 installed. How long must the treated part last to be the preferred alternative, assuming 1 ...

.~,,:<.;~;n. _< 4~i:-. <.i'ii/i'7'!#"' --- After Completing ThisChapter... The student should be able to: ·Use a range ...

r . U ncertai nty Future Events They Only Thought They Were Done Since the early 1980s, the federal law known as "Superfund" ha ...

304 UNCERTAINTY IN FUTURE EVENTS An assembly line is built after the engineering economic analysis has shown that the antici- pa ...

Estimatesand Their Use in Economic Analysis 305 SOLUTION Alternative A NPW=-1000+ 150(PjA, 3Y2%,10) + 100(PjF, 3Y2%,10) =-1000 + ...

306 UNCERTAINTY IN FUTURE EVENTS Use the data of Example 10-1 to compute the sensitivity of the decision to the Alt.Bsalvage val ...

A Range of Estimates 307 Cost Net annual benefit Usefullife, in years Salvage value Optimistic $950 $210 12 $100 Most Likely $10 ...

308 UNCERTAINTY IN FUTURE EVENTS than on the other two. This equation was developed as an approximation with the beta distributi ...

Probability an event in a single trial. It also describes the long-run relative frequency of occurrence of getting heads in man ...

I-- - -_.-- - .- -. " - -- --. - --- 310 UNCERTAINTY IN FUTURE EVENTS What are the probability distributions for the annual bene ...

.... Joint Probability Distributions CombiningJhese, we write 2P(9) +P(9) __ t P(9) 1/3 P(6) =2/3 The probability distribution f ...

--- 312 UNCERTAINTY IN FUTURE EVENTS The project described in Example 10-5 has a first cost of $25,000. The finn uses an interes ...