Your company owns a parcel of land in a currently undeveloped part of the county.  As the neighboring city grows eastward, you believe there is a 50% chance of residential development, a 20% chance of industrial development, and a 30% chance of no development of the area surrounding the parcel of land.   If you build a gas station and the land is developed residentially the station will have a present worth of $250,000. A station in an industrial area will have a present worth of $200,000 and in an undeveloped area a present COST of $10,000. What is the expected monetary value (EV) of the gas station?

There are times when a company must act quickly to make a decision.  Selecting the first alternative which meets a minimum set of requirements is known as

An equipment costing $20,000 for assembling an electronics assembly is being considered by Sam Electronics in Cookeville, Tennessee. The equipment falls under three-year property class as per MACRS depreciation method. The equipment will have a salvage value of $5000 at the end of its life.  If the equipment is sold at the end of 3 years for $8000, determine the loss on sale, recaptured depreciation and/or capital gain using the MACRS depreciation method.

A company is considering 6 projects as listed below for funding from a limited budget of $130K.  Based on these projects, what is the MARR?   Project First Cost ($K) Annual benefit ($K) Life IRR A 15 5.025 8 29% B 20 6.173 5 16% C 60 13.000 8 14% D 35 7.456 10 17% E 40 11.493 8 23% F 40 9.878 10 21%

Smalls Electric Company is considering investing in new power-switching equipment.  The net present worth and probabilities for three probable outcomes are : Outcome: A B C Net PW 5.3K 4.0K 8.6K Probability of outcome 0.50 0.30 0.20   What is the risk, σPW, associated with the proposal?

Job security is an example of

A definitive cost estimate would most likely be found in

Multiple alternatives can be compared graphically by,

In public sector projects, the primary criteria for ranking projects with constrained project selection where benefits can be quantified in monetary terms is

There are times when a company must act quickly to make a decision.  Selecting the first alternative which meets a minimum set of requirements is known as