When evaluating projects by the present worth method, how do you know which one(s) to select, if the (a) projects are independent, and (b) alternatives are mutually exclusive?
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When evaluating projects by the present worth method, how do you know which one(s) to select, if the (a) projects are independent, and (b) alternatives are mutually exclusive?
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- Determine the process to compare alternatives on an equal basis and select the alternative that is wisest from an economic standpoint?A firm spent $2 million for new equipment that reduces greenhouse gases in their operations. The process improvement saved them $14,000 in the first month. (a) What is the first month’s rate of return on this investment? Express that value on an annual effective basis. (b) If this investment was judged not to make economic sense, should some entity pay to reduce such emissions? Who and why?In decision making process, the most important role of engineering economist is to define feasible alternatives. Select one: True False
- When faced with different alternatives, there are many criteria that can be used to identify the best one. What is the tangible criterion that is usually used in an engineering economic analysis?only part d solution is neededIn present worth analysis, the alternative option with the present worth among alternatives is the best option.
- Discuss the importance of alternative identification in the engineering economic process.For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. NO EXCEL An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $200,000 to buy and $80,000 per year to operate. Belts will be replaced one time per year at a cost of $5,500. Centrifuges will cost $400,000 to buy and $120,000 per year to operate, but because the centrifuge will produce a thicker cake, the sludge hauling cost to the monofill will be $30,000 per year less than for the belt presses. The useful lives are 5 and 10 years for BFP and the Centrifuge respectively. The salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. The interest rate is 8%. Use the PW method to select the more economical process.Describe the guidelines for selecting a MARR?