!Required informationAn airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A presentworth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $460,000 and PWB = $395,000. Inaddition to this economic measure, three more attributes were independently assigned a relative importance score from 0to 100 by the department manager and a senior team supervisor.Importance ScoresManager45AttributeEconomicsDurabilitySafetyMaintainability353020AttributeEconomicsDurabilitySafetyMaintainabilitySeparately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in thefollowing table. (The economic attribute was rated using the PW values.)Value RatingProposal A1.000.351.000.25Importance ScoresSupervisor4035Select the better proposal using the following method.Weighted evaluation of the department manager's method.The value of R; for A isThe value of R¡ for BisThe better proposal is (Click to select)2515Value RatingProposal B0.900.500.201.00

In the above table, scores to each attribute is given as per the manager and supervisor. In the…

An airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $460,000 and PWB = $395,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the department manager and a senior team supervisor. Importance Scores Manager 45 35 30 20 Attribute Economics Durability Safety Maintainability Importance Scores Supervisor 40 35 25 15 Separately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in the following table. (The economic attribute was rated using the PW values.)

An airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $460,000 and PWB = $395,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the department manager and a senior team supervisor. Importance Scores Manager 45 35 30 20 Attribute Economics Durability Safety Maintainability Importance Scores Supervisor 40 35 25 15 Separately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in the following table. (The economic attribute was rated using the PW values.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

An industrial engineering consulting firm usually observes a 90% learning curve rate in the installation of enterprise level software with its clients. If the first installation required 75 hours, estimate the time required for (a) the fifth, (b) the tenth, and (c) the twentieth installations. (d) Research the AMCF Code of Ethics. How are these similar to and different from engineering society ethics statements from your discipline?
Viva sells its waterproof phone case for $118 per unit. Fixed costs total $232,000, and variable costs are $53 per unit. (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio %3D (2) Determine the break-even point in dollars. Numerator: Denominator: Break-Even Point in Dollars Break-even point in dollars %3D
Eng. Eco. Q1 Gamma Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find(a) The break-even sales quantity
SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical Me (VSL) needed to justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).
Eng. Eco. Q1 Gamma Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find(a) The break-even sales.
Develop a plot of the average cost per unit versusproduction quantity for the houseware applianceassembly department of Ace-One, Inc., that has afixed cost of $160,000 per year and a variable costof $4.00 per unit; use it to answer the followingquestions.(a) At what quantity is a $5 per unit average costjustified?(b) If the fixed cost increases to $200,000, plot thenew curve on the same graph and estimate thequantitythat justifies an average cost of $6 per unit.
What P(s1) would the decision-maker be indifferent between the "buy" and "make" decisions, all other data input remaining the same?
Different types and capacities of crawler hoes are being considered for use in a significant excavation project to bury fiber-optic cable in Argentina. Several supervisors who have experience with similar projects have identified key attributes and their view of relative importance. Determine the weighted rank order (0 to 10 scale) and the normalized weights. Attribute Comment 1. Truck vs. hoe height 90% as important as trenching speed 2. Type of topsoil Only 10% of most important attribute 3. Type of subsoil 30% as important as trenching speed 4. Hoe cycle time Twice as important as type of subsoil 5. Hoe trenching speed Most important attribute 6. Cable-laying speed 80% as important as hoe cycle time
the factors that affect the decision making in engineering projects are economic factors only Select one: True False
Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. (a) Determine the breakeven output (in dollars). (b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a target (operating) profit of $1,500,000. (c) Determine the degree of operating leverage at an output of 400,000 barrels. (d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.
Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5 = $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?
The town of Whoopup has decided that it needs a new public library. Although the city leaders have made this decision, the decision of location of the library is still an open question. Knowing that you have a back ground in economic decision making, they selected you to formulate their decision problem. You gather data from the city leaders to determine the important attributes to consider in the decision; you then acquire information for both sites and present it in teh shown Table . Use the tools introduced in this chapter to make a site recommendation. Prepare to defend your analysis.