Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 36FE
To determine
Profitability of the project.
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2. The cash flows from a contemplated project are assumed to have a Beta distribution with
following estimated values:
EOY
0
Pessimistic, Yp
S-14,000
1
0
2
5,000
3
8,000
Most likely
$-12,000
2,000
8,000
12,000
Optimistic, Yo
$-10,000
4,000
11,000
16,000
(a) Calculate the means and standard deviations of the cash flow for each year.
(b) Assume MARR-15%, find the the mean and standard deviation of the net present
value. (Assume the cash flows are completely independent.)
plans are underway for a new stadium for a baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $300,00. The fixed construction cost for the upper deck area is estimated to be $4,500,000, with a variable cost of $150,000 for each box constructed.
a. What is the breakeven point for the number of luxury boxes in the new stadium?
In a project you are managing if you estimated the optimistic (a), most likely(m) and pessimistic (b)times for activity B to be 5, 8 and 10 days respectively then the best estimate for the meaning of activity B is?
a.7.67
b. 7.83
c. 8.00
d. 10.00
Chapter 11 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 11 - Prob. 1PCh. 11 - Refer to Example 11-2. Assuming gasoline costs...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - A bridge is to be constructed now as part of a new...Ch. 11 - An aerodynamic three-wheeled automobile (the Dart)...Ch. 11 - Prob. 23PCh. 11 - Prob. 24SECh. 11 - Prob. 25SECh. 11 - Prob. 26SECh. 11 - Prob. 27SECh. 11 - Prob. 28SECh. 11 - Prob. 29SECh. 11 - Prob. 30FECh. 11 - Prob. 31FECh. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - A supermarket chain buys loaves of bread from its...Ch. 11 - Prob. 34FECh. 11 - Prob. 35FECh. 11 - Prob. 36FECh. 11 - Prob. 37FECh. 11 - Prob. 38FECh. 11 - Prob. 39FECh. 11 - Prob. 40FECh. 11 - Prob. 41FECh. 11 - Prob. 42FE
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