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- In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as: Select one: a. negative cost b. cost c. benefit d. disbenefit =================== Ali takes out a loan at 10 percent compounded annually for 7 years. At the end of this period, he pays off the loan at a value of $23,384.61. What amount did he borrow? Select one: a. $12,000.00 b. $15,000.00 c. $14,000.00 d. $13,000.00 ============= While considering the engineering economy concepts, the most important tense almost all exercises deal with is the annual worth. Select one: True False Ans allThe question reads. A theater is presenting a program of drinking and driving for students and their parents or other responsible adults. The proceeds will be dontated to a local alcohol information center. Admission is $6.00 for adults and $3.00 for students. However this situation has two contraints. The theater can hold no more than 180 people and for every two adults, there must be at least one student. Hhow many adults and students shold attend to raise the maimum amount of money? What is the best way to work out this problem not using graphing. z=6x+3y contraints are x+y≤180 x-2y≤0The subject property has a pool valued at $30,000 and two bathrooms valued at $10,000 each. Comp 1 does not have a pool and has one less bathroom than the subject property. What adjustments should be made to Comp 1's value? add $20,000 to Comp 1's value add $40,000 to Comp 1's value subtract $20,000 from Comp 1's vatue subtract $40,000 from Comp 1's value
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- #6) A group of medical professionals is considering constructing a private clinic. If a patient demand for the clinic is high, the physicians could realize a net profit of $120,000. If the demand is low, they could lose $55,000. Of course, they do not have to proceed at all, in which case there is no cost. In the absence of any market data, the best the physicians can guess is that there is a 50-50 chance the demand would be high. a) Create a decision tree. b) What should the medical professionals do? What is the payoff? c) The physicians have been approached by a market research firm that offers to perform a study of the market at a fee of $5,000. The market researchers claim that their experience enables them to use Bayes’ theorem to make the following statements of probability: -probability of high demand given a positive survey result = 0.82 -probability of low demand given a positive survey result = 0.18 -probability of high demand given a negative survey result = 0.11…he “fixed cost per unit function” may also be described as: a. the total cost line b. the total fixed cost line c. the total variable cost line d. an asymptoteBill Holliday isn't sure what he should do. He can build a four-apartment building, a two-apartment building, gather additional information, or simply do nothing. If he gathers additional information, the results could be favorable or unfavorable, but it would cost him $3,000 to gather it. Bill thinks there is a 50-50 chance that the information will be favorable. If the rental market is favorable, Bill will earn $15,000 with four apartments or $5,000 with two. He does not have the financial resources to pursue both options, but with an unfavorable rental market he would lose $20,000 with four apartments or $10,000 with two. Without gathering additional information, Bill estimates the probability of a favorable rental market to be 0.7. A favorable survey report would increase the probability of a favorable rental market to 0.9. Moreover, an unfavorable report of the additional information would decrease the probability of a favorable income market to 0.4. Of course, Bill can forget…