The Athlete’s Shop owner evaluated two proposals for exercise equipment. A present worth analysis at i = 15% resulted in PWA = $340,000 and PWB = $290,000. Independently, the lead trainer assigned a relative importance score from 0 to 100 to three noneconomic attributes, plus the economic attribute. Attribute Trainer’s ScoreEconomics 80Durability 35Flexibility 30Maintainability 50 Separately, you have used the four attributes to value rate the proposals on a scale of 0 to 1.0 as shown in the following table. Value Ratings Attribute Proposal A Proposal BEconomics 1.00 0.90Durability 0.35 1.00Flexibility 1.00 0.90Maintainability 0.25 1.00 Select the better proposal using (a) present worth, and (b) the weighted attribute method.
The Athlete’s Shop owner evaluated two proposals for exercise equipment. A present worth analysis at i = 15% resulted in PWA = $340,000 and PWB = $290,000. Independently, the lead trainer assigned a relative importance score from 0 to 100 to three noneconomic attributes, plus the economic attribute.
Attribute Trainer’s Score
Economics 80
Durability 35
Flexibility 30
Maintainability 50
Separately, you have used the four attributes to value rate the proposals on a scale of 0 to 1.0 as shown in the following table.
Value Ratings
Attribute Proposal A Proposal B
Economics 1.00 0.90
Durability 0.35 1.00
Flexibility 1.00 0.90
Maintainability 0.25 1.00
Select the better proposal using (a) present worth, and (b) the weighted attribute method.
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