Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 12

The Athlete's Shop has evaluated two proposals for weight lifting and exercise equipment. A pres­ent worth analysis at i = 15% per year of esti­mated revenues and costs resulted in PW A = $440,000 and PW B = $390,000. In addition to this economic measure, three more attributes were independently assigned a relative impor­tance score from 0 to 100 by the shop manager and the lead trainer. Separately, you have used the four attributes to rate the two equipment proposals on a scale of 0 to 1.0 as shown in the following table. The economic attribute was rated using the PW values. Select the better proposal using each of the follow­ing methods.
a) Present worth
b) Weighted evaluations of the shop manager
c) Weighted evaluations of the lead trainer