Question 2: Your friend Ahmed had a car accident and he need another car immediately because he does not have any other means of transportation and he found out that walking, riding a bike, and taking a bus are not practical in the summer time. An automobile wholesaler offers him $(2,000 for the scratched car "as is". Also, his insurance company estimates that there is $2,000 in damages to his car. The insurance company can fix the car right away in a repair shop belonging to this company. Because he had collision insurance with a $1,000 deductibility provision, the insurance company mails him a check with only $1,000. The odometer reading on his damaged car is 58,000 miles. What should your friend Ahmed do? Use the seven-step procedure from Table 1.1 to analyze Ahmed's situation and advise him. Additional Information: You have $9,000 in savings. You can buy a newer car for $10,000 with an odometer reading of 500 miles. After repairing the damaged car, it can be sold for $4,500 A discount repair shop charges $1,100 and requires 1 month. A car rental for one month is $400. words English (United States) STEP - Engineering Economic Analysis Procedure Step 1. Problem recognition, definition, and evaluation. I 2 Development of the feasible alter- natives. 3. Development of the outcomes and cash flows for each alternative. 4. Selection of a criterion (or criteria). 5. Analysis and comparison of the alternatives. 6. Selection of the preferred alternative. 7. Performance monitoring and post- evaluation of results. Question 2: Your friend Ahmed had a car accident and he need another car immediately because he does not have any other means of transportation and he found out that walking, riding a bike, and taking a bus are not practical in the summer time. An automobile wholesaler offers him $(2,000 for the scratched car "as is". Also, his insurance company estimates that there is $2,000 in damages to his car. The insurance company can fix the car right away in a repair shop belonging to this company. Because he had collision insurance with a $1,000 deductibility provision, the insurance company mails him a check with only $1,000. The odometer reading on his damaged car is 58,000 miles. What should your friend Ahmed do? Use the seven-step procedure from Table 1.1 to analyze Ahmed's situation and advise him. Additional Information: You have $9,000 in savings. You can buy a newer car for $10,000 with an odometer reading of 500 miles. After repairing the damaged car, it can be sold for $4,500 A discount repair shop charges $1,100 and requires 1 month. A car rental for one month is $400. words English (United States) STEP - Engineering Economic Analysis Procedure Step 1. Problem recognition, definition, and evaluation. I 2 Development of the feasible alter- natives. 3. Development of the outcomes and cash flows for each alternative. 4. Selection of a criterion (or criteria). 5. Analysis and comparison of the alternatives. 6. Selection of the preferred alternative. 7. Performance monitoring and post- evaluation of results
