IE 150 Problem Set 15 Replacement Analysis without Taxes (Diff UL) Instructions: • Write/Type/Print your answers on yellow pad or bond paper (NO A4’s). Use a different sheet per problem. • Use phrases to describe what you are doing. Do not present it as just a series of equations and numbers. • Label each step. Ex: “Step 1: Set-up the Total Revenue Equation”, “Step 4: Solve for the NPV”. • Box the final answers. • Use clear formatting: Indent at each step. Show your answers in just 1 column. (The problem set will be read from top to bottom, and not top bottom diagonal right bottom.) Problem 1: A taxi operator manages the assignment of each taxi to taxi-drivers. It is his prime interest that the cost of operating each taxi is kept to a minimum. In 2005 he purchased 20 taxis all of which are now under
This is the end of the preview.
access the rest of the document.