1-3 Which one of the following problems is most suitable for analysis by engineering economic analysis? (a)...
Question:
1-3 Which one of the following problems is most suitable for analysis by engineering economic analysis?
(a) Some 75 candy bars are on sale for 12 bars for $6. Sandy, who eats a couple of candy bars a week, must decide whether to buy a dozen at the lower price.
(b) A woman has $150,000 in a bank checking account that pays no interest. She can either invest it immediately at a desirable interest rate or wait a week and know that she will be able to obtain an interest rate that is 0.15% higher.
(c) Joe backed his car into a tree, damaging the fender. He has car insurance that will pay for the fender repair. But if he files a claim for pay- ment, they may give him a lower "good driver" rating and charge him more for car insurance in the future.
Step by Step Answer:
Engineering Economic Analysis
ISBN: 9780357419687
11th Edition
Authors: Donald Newnan, Ted Eschenbach, Jerome Lavelle