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Chap 2 examples

Chap 2 examples - Example 1 A municipal solid-waste site...

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Example 1 A municipal solid-waste site for a city must be located in Site A or Site B. After sorting, some of the solid refuse will be transported to an electric power plant where it will be used as fuel. Data for the hauling of refuse from each site to the power plant are shown below. If the power plant will pay $8 per cubic yard of sorted solid waste delivered to the plant, where should the site be located? Use the city’s viewpoint and assume that 200,000 cubic yards of refuse will be hauled to the plant for one year only. One site must be selected. Site A Site B Avg hauling dist. 4 miles 3 miles Annual rental fee for solid-waste site $5,000 $100,000 Hauling cost $1.50/yd 3 -mile $1.50/yd 3 -mile
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Example 2 Stan Moneymaker presently owns a 10-year old automobile with low mileage (78,000 miles). The NADA blue book value of the car is $2,500. Unfortunately, the car’s transmission just failed, and Stan decided to spend $1,500 to have it repaired. Now, 6 months later, Stan has decided
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