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1. What are sunk costs and how are they included in engineering economy analyses?
2. Why is a common analysis period necessary in comparing mutually exclusive alternatives by the Present Worth method but is not necessary in the Equivalent Uniform Annual Cash Flow method?
3. Based on a Rate-of-Return analysis of alternatives A & B alternative B was selected. A Net Equivalent Uniform Annual analysis of the same alternatives led to the selection of alternative A. Describe the circumstances which could lead to this outcome.
4. Why is the somewhat unrealistic assumption often made that when a capital asset has reached the end of its useful life, it is replaced by an indentical replacement (with the same costs, performance, and so forth)?
Suppose that the probability that a used bike is a lemon (low quality) is 'p' and the probability that a used bike is a plum (high quality) is '1-p'. If a buyer is willing to pay $H for a plum used bike and $L for a lemon used bike,
You have been put in charge of electricity restructuring on the Isle of Mann. As part of the restructuring plan, it has been suggested to you that all wholesale electricity should be sold on the spot market at a price that is set every single min..
describes a measure used to compare two different tests with the same group of participants to see how closely correlated the two sets of scores are with each other. Inter-rater reliability, Test-retest reliability, Parallel-forms reliability, Intern..
Zachary must make a financial presentation to a bank in order to try to get a loan for his new business. He wants to show the firm's projected sales growth and increase in market share for the first five years. He will most likely use a(n) softwar..
Give real world examples of each of them. How would you construct an argument around the comment "more money you have the more problems you have".
Suppose the annual inflation rate is at 2% and 8.5% of the labor force is currently unemployed. If you were on the Fed's Open Market Committee, what action would you prescribe? How would this affect the economy, the inflation rate, and the unemplo..
What is the underground economy? What is the impact on the underground economy of instituting a tax on a certain productive activity?
What fact might lead the manager to be concerned? If true, what do you think is likely to happen to the price of products G.R. Dry Foods sells?
Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,
In 2005, hogs in the US were selling for $67 each, down from $75 a year ago. This was primarily due to fact that supply had raise during the period to 1.8 million hogs per week.
Starting with the estimated demand function for Chevrolets given in Problem 2, assume that the average value of the independent variables changes to N=225 million, I =$12,000, P= $10,000 P= 100 cents, A=$250,000 and P=O
Consider an economy with three types of drivers: safe (s), inexperienced (i), and crazy (c). There is an equal number of each of these drivers, and their wealth when they do not get into an accident is $324 per person. In any given year, the proba..
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