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ENGG 209 (6)
Lecture

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Department
Engineering
Course
ENGG 209
Professor
Ronald Schlenker
Semester
Fall

Description
Mutually exclusive alternatives implies other will be excluded. al alternatives will fulfill the same need,so the selection of one alternatives Service Project - doesn't affect firms revenue,so it just affects the costs. - choose project with the lowest cost. Revenue Project - Revenues depend on the choice of the alternative. - choose the project with the highest PW/FW/AE ( assuming they are positive ) Analysis Period - time span over which economic effects are to be evaluated. a) must make a fair comparison between projects. b) equal lives gives straight comparison of PW/FW/AE c) project lives shorter than analysis period (
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