Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 23P
If the interest rate is 8% per year, what decision would you make based on the decision tree diagram in Figure P12-23?
Figure P12-23 Decision Tree Diagram for Problem 12-23
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A former student of an engineering department wishes to donate to the
department's scholarship fund. Three options are available:
Plan A: $60,000 now
Plan B: $15,000 per year for 8 years beginning year 1 from now
Plan C: $50,000 three years from now and another $80,000, five years from
now.
From the department's perspective, it wants to select the plan that
maximizes the buying power of the dollars received. The department head
asked the engineering professor evaluating the plans to account for inflation
in the calculations. If the donation earns a real 10% per year and the
inflation rate is expected to average 3% per year, which plan should be
accepted?
O B
A student's course grade is based on one midterm that counts as
20%
of his final grade, one class project that counts as
25%
of his final grade, a set of homework assignments that counts as
50%
of his final grade, and a final exam that counts as
5%
of his final grade. His midterm score is
63,
his project score is
82,
his homework score is
90,
and his final exam score is
70.
What is his overall final score? What letter grade did he earn (A, B, C, D, or F)? Assume that a mean of 90 or above is an A, a mean of at least 80 but less than 90 is a B, and so on.
His overall final score is
nothing.
(Type an integer or a decimal rounded to one decimal place as needed.)
His letter grade is
(1)
(1)
C.
F.
D.
B.
A.
Chapter 12 Solutions
Engineering Economy (17th Edition)
Ch. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - A new snow making machine utilizes technology that...Ch. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10P
Ch. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - If the interest rate is 8% per year, what decision...Ch. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26SE
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Decision Tree Analysis - Intro and Example with Expected Monetary Value; Author: Vincent Stevenson;https://www.youtube.com/watch?v=cbCsCQ4l4Zs;License: Standard Youtube License