A project has an uncertain first cost and useful life. What is the expected value for each variable? First Cost $300,000 400,000 600,000 Probability 0.2 0.5 0.3 Useful Life 4 5 6 0.3 0.5 0.2 Probability
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- With respect to the graph below, if the MARR for this particular scenario were 2%, which altemative should be selected based solely on incremental analysis? Estimated Response Time for Awarage Student <1 minuto) BUDDO 4, 3,000 2.000 4,000 IMA N INDOTONT a. The High Cost Altemative b. The Low Cost Altemative c. The Increment d. The Do Nothing Alternative e. All of the Above TAL www -Highl Lara IrrremYou have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12%. Determine the AW if the annual savings change by the following percentages from the initial estimate: b. -80%c. -60%d. -40%e. -20%f. +20%g. +40%h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the projectThe estimates for a project appear in the following table: Dear optimistic most likely pessimist Fixed cost($) 250,000 250,000 250,000 Annual profit ($) 20,000 15,000 8,000 Shelf life(years) 30 30 30 Residual value($) 000 to. Use the range of values to calculate the heavy average of benefits. b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a MARR of 10%. Heavy average annual benefits =$ ; Average Present Value = $
- A firm is choosing between machines that perform the same task in the same time. Assume the minimum attractive return is 10%. Which machine would you choose? Machine Machine First cost Estimated life, in years Salvage value Annual maintenance cost Solution: $5,000 $8,000 6 13 0 2000 0 150 1. Machine X: EUAC=$ 2. Machine Y: EUAC=$ 3. Select Machine 0A decision has been made to perform certain repairs on the outlet works of a small dam. For a particular 36-inch gate valve, there are three available alternatives: A. Leave the valve as it is. B. Repair the valve. C. Replace the valve. If the valve is left as it is, the probability of a failure of the valve seats, over the life of the project, is 60%; the probability of failure of the valve stem is 50%; and of failure of the valve body is 40%. If the valve is repaired, the probability of a failure of the seats, over the life of the project, is 40%; of failure of the stem is 30%; and of failure of the body is 20%. If the valve is replaced, the probability of a failure of the seats, over the life of the project, is 30%; of failure of the stem is 20%; and of failure of the body is 10%. The present worth of cost of future repairs and service disruption of a failure of the seats is $10,000; the present worth of cost of a failure of the stem is $20,000; the present worth of cost of a…Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.
- The ore of a gold mine in the province contains, on average, 0.5 ounce of gold per ton. Method A ofprocessing costs 150Php/ton and recovers 93% of the gold, while Method B costs only 120Php/tonand recovers 81% of the gold. If gold can be sold at 1,200/ounce, which method is better and by howmuch?a. Method A, by 43Phpb. Method A, by 42Phpc. Method B, by 42Phpd. Method B, by 43PhpA project's approved budget is $210000 and planned budget to date is $45000. What will be the schedule variance when the schedule performance index is 0.4? -270O Tes W List G tes N Un A Sha E 031 A Sh: G ger G Go G Csi G go G Gr Day%205%20-%20Earned%20value%20analysis.pdf 13 /35 100% Sample question- performance index Your sponsor thinks your project is on track. The CPl is o.85 and the SPI is 1.30. What do you report to your sponsor? Project is progressing faster and cesting less-than planned Nothing until you bring the project back on track. C. Project is progressing faster and costing more than planned А. В. Project is progressing slower and costing more than planned. D. Activate Wir Go so Settinos to 13°C Mostly cloudy
- which firm/s can close already to avoid futher loss?a) There is possibility of risk occurrence even when risk reduction techniques are n place. How will deal with this scenario and how will you justify cost-effectiveness of a risk reduction technique? b) Identify the schedules that are used on daily basis for the control and management of the project.stion 5 O out of 11 $500 $S00 5500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Compute P. 2 5 10 11 12 50 i = 10% estion 6 O out of 10 S500 E= ? 10 $500 $500 $500 Compute F10= 10 11 12 13 i-10% 10 out of 10 uestion 7