Which alternative is superior

Assignment Help Basic Statistics

Reference no: EM131014694

Consider two design alternative each with a 10-year design life and the following cash flows: initial con- struction Uj; annual operating costs, Ej; annual maintenance costs, Mj; and salvage cost, Sj, at the end of the design life (analysis period). The alternatives are the same with only one exception: for Alternative 1, there is an amount (a benefit) in Year 1, while for Alternative 2 that amount (benefit) occurs in Year 9.

(a) Which alternative is superior?

(b) If the amounts were costs and not benefits, which alternative would be superior?

(c) What conclusions can you draw from your answers to (a) and (b) about the influence of the timing of amount occurrence on economic evaluation.

Reference no: EM131014694

Questions Cloud

How many ways can the system be configured to work perfectly : In how many ways can the system be configured to work perfectly if its components have to be arranged in a specific order? For example, ABC is not the same as CBA, so these two configurations are "counted" differently.

Estimate the proportion of all freshmen : Estimate the proportion of all freshmen at the university working at least 20 hours per week. Develop your estimate on the basis of a 95% con?dence interval.

National population of wimberley terriers : Based on that information, develop a 95% con?dence interval to provide an estimate of the mean birth weight for the national population of Wimberley Terriers.

Problem regarding the entire population of program : Based on that information, de- velop a 95% con?dence interval to provide an estimate of the mean skill level for the entire population of program participants.

Which alternative is superior : If the amounts were costs and not benefits, which alternative would be superior? What conclusions can you draw from your answers to (a) and (b) about the influence of the timing of amount occurrence on economic evaluation.

Skill level for the entire population of program : Based on that information, develop a 95% con?dence interval to provide an estimate of the mean skill level for the entire population of program participants.

Evaluate the strengths and weaknesses of progressivism : How successful were business people in overcoming the problems that confronted them in the last third of the nineteenth century?

Find the probability that the company will win : Ultra Construction Company is bidding on three contracts. The probability of winning contracts A, B, and C are 0.35, 0.75, and 0.65, respectively. Find the probability that the company will win (a) all three contracts and (b) any two of the three ..

Mean score for a verbal exam : 1. The mean score for a verbal exam is 65, with a standard deviation of 4. You are told that your score is two standard deviations above the mean. What is your score?

User Account

All Pages