EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220100255052
Author: Blank
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 4, Problem 1P
State two conditions under which the do-nothing alternative is not an option.
Expert Solution & Answer
To determine
Related to do-nothing option.
Explanation of Solution
When there is a requirement to select one of the qavaiolable option, then do-nothing opption cannot be used. When the cash flow of the existing options are only cost, then dop-nothing option will not be used.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
only part d solution is needed
When conducting an ROR analysis of mutually exclusive cost alternatives: (a) All of the projects must be compared against the do-nothing alternative (b) More than one project may be selected (c) An incremental investment analysis is necessary to identify the best one (d) The project with the highest incremental ROR should be selected
There may be no correct option, or more than one correct option..
Chapter 4 Solutions
EBK BASICS OF ENGINEERING ECONOMY
Ch. 4 - State two conditions under which the do-nothing...Ch. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - The costs associated with manufacturing a...
Ch. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Two mutually exclusive projects have the estimated...Ch. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - The manager of engineering at the 900-megawatt...Ch. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Three different plans were presented to the GAO by...Ch. 4 - The U.S. Army received two proposals for a turnkey...Ch. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63APQCh. 4 - Prob. 64APQCh. 4 - Prob. 65APQCh. 4 - Prob. 66APQCh. 4 - Prob. 67APQCh. 4 - Prob. 68APQCh. 4 - Prob. 69APQCh. 4 - Prob. 70APQCh. 4 - Prob. 71APQ
Additional Business Textbook Solutions
Find more solutions based on key concepts
Explain how to derive a total expenditures (TE) curve.
Macroeconomics (Book Only)
You are advising a coffee shop manager who wants to estimate how much sales will change if the price of a latte...
Microeconomics
• Illustrate and interpret shifts in the short-run and long-run aggregate supply curves.
Economics of Money, Banking and Financial Markets, The, Business School Edition (4th Edition) (The Pearson Series in Economics)
Assume the United States is an importer of televisions and there are no trade restrictions. US consumers buy 1 ...
Principles of Microeconomics
If a 3-percent increase in the price of corn flakes causes a 6-percent decline in the quantity demanded, what i...
Microeconomics (9th Edition) (Pearson Series in Economics)
Knowledge Booster
Similar questions
- To choose the best alternative among the given alternatives in the annual cash flow analysis method, it is necessary to compute the EUAW for each alternative over a period of one cycle only. True / Falsearrow_forwardCharlie’s Truck Repair and Service has a new contract that requires him to purchase and maintain new equipment for work on 18-wheeler trucks and heavy road equipment. Two separate vendors have made quotes and estimates for Charlie. Use the estimates and 6% per year return requirement to find the better economic option. One problem is that Charlie does not currently know if the contract will last for 5, 8, or 10 years. He needs a recommendation for all three time periods. Table 1. Economical alternatives offered by Vendorsarrow_forwardWhy is an incremental analysis necessary when conducting a rate of return evaluation of cost alternatives?arrow_forward
- Two mutually exclusive alternatives are available. If the interest is 15%, select the best alternative according to the VP method. The cash flow profiles for the alternatives are as follows. draw the diagram for those alternativesarrow_forward(engineering economics) Determine the best alternative based on a 12% MARR using the following methods: (a) Rate of Return; (b) Payback Periodarrow_forwardWhich one of the following descriptions is correct according to this extensive form? (I think it's 3rd option but unsure)arrow_forward
- When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: (a) Always compare them over a period equal to the life of the longer-lived alternative (b) Always compare them over a time period of equal service (c) Always compare them over a period equal to the life of the shorter-lived alternative (d) Find the present worth over one life cycle of each alternativearrow_forwardWHICH IS CORRECT OPTION IN THE SECOND SUBPART .arrow_forwardPlease find PW (present worth) of the least common multiple in the attached picture below: FOR PART Aarrow_forward
- What is the Present Worth of Alternative A (Round off answer to 2 decimal places)arrow_forwardWhy is it okay to use Incremental IRR between two same life projects that has different first cost and annual cash flow even when MARR is not given / stated ?arrow_forwardHow is the decision procedure used when comparing two or more mutually exclusive projects on the basis of the rate-of-return measure?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education