Reference no: EM132617629

Chapter 3. Engineering Economic Analysis

1. "What do I feel are the most important aspects of my learning in the chapters (Engineering Economic Analysis) this week?" and "What about this learning was really worthy of my time and understanding?" Then explain how important it is in society or business.

2. American businesses have often been criticized for short-term thinking that places too much emphasis on payback period and ROR. When Honda started making cars in the early 1970s, for example, the chief executive officer stated that the firm would be "willing to accept an ROR no greater than 2% or 3% for as long as it took to be recognized as the best car maker in the world." In light of the success of many Japanese firms, is the criticism of American business justified?

3. Most countries have a progressive income tax system whereby each dollar earned in incrementally higher tax brackets is taxed at an increasingly higher rate. Do you think that a flat tax system would be more fair? How about a proportional tax system? Explain your answer.