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samplemid2 - ENGINEERING ECONOMICS ECO 1192A Second Partial...

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1. A major difference between the analysis of private sector projects and the analysis of public sector projects is that the analysis of a) private sector projects includes all tangible and intangible impacts while the analysis of public sector projects limits itself to tangible impacts b) private sector projects includes all tangible impacts while the analysis of public sector projects limits itself to intangible impacts. c) private sector projects includes all tangible impacts while the analysis of public sector projects considers both tangible and intangible impacts. d) None of the above answers. INFORMATION FOR QUESTIONS 2 TO 3 Ace Strategic Planning is responsible for implementing as many of the following 5 independent projects as possible with its $20 million budget. Each project has a 10-year life. MARR = 10%. Project Initial Investment (Millions of dollars) Annual Net Cash Flow (Millions of dollars) A 10 2.8 B 15 2.9 C 8 2.7 D 6 2.5 E 21 9.5 2. How many bundles of independent projects are there? a) 2 b) 8 Engineering Economics        ECO 1192                 Page 1 Second Partial Examination Page ENGINEERING ECONOMICS ECO 1192A Second Partial Examination C.Théoret
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c) 16 d) 32 e) None of the above answers. 3. How many feasible bundles of independent projects are there? 4. A business should maintain accurate depreciation records of capital assets to 5. A capital (physical) asset’s annual accounting depreciation is defined as its INFORMATION FOR QUESTIONS 6 TO 8 DETAILS PROJECT A PROJECT B First Cost($) 50,000 90,000 Economic Life (years) 5 10 Annual Revenues ($) 25,000 30,000 Annual operating cost ($) 10,000 9,000 in the first year followed by annual decreases of $500 (e.g., 8,500 in year 2; 8,000 in year 3, etc.) Salvage Value ($) 0 -2,000 MARR (%) 10 10 Engineering Economics        ECO 1192                 Page 2 Second Partial Examination Page
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