Chapter 1, Problem 3P

To determine

Which of the situation requires engineering economic analysis?

(a) One of your two favorite sandwich shops offers a 10-punch loyalty card and the other does not. Where should you shop today?

(b) A woman has $150,000 in a bank checking account that pays no interest. She can either invest it immediately at a desirable interest rate or wait a week and know that she will be able to obtain an interest rate that is 0.15% higher.

(c) Joe backed his car into a tree, damaging the fender. He has car insurance that will pay for the fender repair. But if he files a claim for payment, they may charge him more for car insurance in the future.