Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 1, Problem 2P

Which of the following would be considered noneconomic factors in deciding which type of power plant to build: (a) equipment cost; (b) morale; (c) goodwill; (d) salvage value; (e) public acceptance; and (f) aesthetics?

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In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as: Select one: a. negative cost b. benefit c. disbenefit d. cost
Large projects, such as a new tunnel under the Hudson, the Big Dig in Boston, the Denver airport, a new military jet, and a natural gas pipeline from Alaska to the Midwest, often take 5 to 15 years from concept to completion. (a) Should benefit and cost estimates be adjusted for the greater influences and impacts of inflation, government regulatory changes, and changing local economic environments? Why or why not? (b) How does the public budget-making process interact with the goal of accurate benefit and cost estimating for these large projects?

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