Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 14, Problem 12P

(a):

To determine

Selecting alternative.

(b):

To determine

Different selection.

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Answer all questions, show all working.  Marta and Sara are two students that devote part of their free time to doing surveys for a market research company. The income obtained from this activity depends on the number of surveys they do, bearing in mind that the girls may freely choose the interviewees. As they both live in the same neighborhood in case, they just interview their neighbors (N), they compete for the same people and their monthly income is about 250 Euros. If they both choose to go to other neighborhoods of the city and interview strangers (S), they can carry out more surveys and both their incomes would be 400. If one of them decides to go and interview people in another neighborhood but the other one does not, the former will obtain income for 500, and the latter for 300, and vice versa. After receiving the order from the company, Marta is always the one who starts to work first. Sara has information about the places where Marta has done the surveys. Please:…
A major proposed industry in the future is the provision of global satellite wifi.  However, the actual willingness to pay for such a service is unknown.  Assume there's a 40% chance that there are 1 billion people willing to pay $100/year for a service that would cost $60/year to provide and a 60% chance that those people would be willing to pay $10/year for a service that would cost $60/year to provide.  Assume that the enterprise involved with this risky industry has an interest rate or discount rate of 20%.a. What is the expected value, annually, of providing this service?b. Assume that you could spend $75 billion to launch a testbed of the program, that could then either be scrapped if the willingness to pay were $10 or continue at normal cost afterward (for simplicity, assume that the program will last forever and generate constant annual returns if it is continued) if the willingness to pay were $100.  What is the net expected value of this testbed?
Marta and Sara are two students that devote part of their free time to doing surveys for a market research company. The income obtained from this activity depends on the number of surveys they do, bearing in mind that the girls may freely choose the interviewees. As they both live in the same neighborhood in case, they just interview their neighbors (N), they compete for the same people and their monthly income is about 250 Euros. If they both choose to go to other neighborhoods of the city and interview strangers (S), they can carry out more surveys and both their incomes would be 400. If one of them decides to go and interview people in another neighborhood but the other one does not, the former will obtain income for 500, and the latter for 300, and vice versa. After receiving the order from the company, Marta is always the one who starts to work first. Sara has information about the places where Marta has done the surveys. Please:   Represent this game extensively. Represent this…
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