Engineering Economy
Engineering Economy
8th Edition
ISBN: 9780073523439
Author: Leland T Blank Professor Emeritus, Anthony Tarquin
Publisher: McGraw-Hill Education
Question
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Chapter 5, Problem 1P

(a)

To determine

Comparing the alternatives when it is independent.

(a)

Expert Solution
Check Mark

Explanation of Solution

When all the available alternatives are independent, it cannot compare with the available other alternatives since it does not compete with each other. Thus, it can be compared with the alternative Do Nothing (DN).

(b)

To determine

Comparing the alternatives when it is mutually exclusive.

(b)

Expert Solution
Check Mark

Explanation of Solution

When the projects are mutually exclusive, it competes with each other. Thus, each alternative should compare pairwise.

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