Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 29

For each situation below, determine (1) if the variable is discrete or continuous and (2) if the information involves certainty, risk, and/or uncertainty.
a) The first cost of a new front-end loader is $34,000 or $38,000 depending on the size purchased.
b) The raises for engineers and technical staff employees will be 3%, or 5%, with one-half getting 3% and one-half getting 5%.
c) Revenue from a new product line is expected to be between $350,000 and $475,000 per year.
d) The salvage value for an old machine will be $500 (i.e., its asking price) or $0 (it will be thrown away).
e) Profits are equally likely to be up anywhere from 25% to 60% this year.