Engineering Economy 16th Edition by William Sullivan ,Elin Wicks, Koelling,

Exercise 3

You have inherited a large sum of money from Aunt Bee. You think the purchase of a beach house would be a good investment. Besides a good investment, you could enjoy the house with your family for many years to come. You live about 150 miles from the ocean, and there are several communities that would be excellent candidates for your purchase (or for building a new house). Identify five attributes, with at least three nonmonetary, that would be important in your decision of where to purchase or build. Specify appropriate values that you might assign to the nonmonetary attributes. Assign approximate weights to these attributes by using a method discussed in this chapter. (Problem, Problem 1)
Problem
You have inherited a large sum of money from Aunt Bee. You think the purchase of a beach house would be a good investment. Besides a good investment, you could enjoy the house with your family for many years to come. You live about 150 miles from the ocean, and there are several communities that would be excellent candidates for your purchase (or for building a new house). Identify five attributes, with at least three nonmonetary, that would be important in your decision of where to purchase or build. Specify appropriate values that you might assign to the nonmonetary attributes. Assign approximate weights to these attributes by using a method discussed in this chapter.
Problem 1
You are ready to finally plan your family summer vacation. After what seems like an eternity of long hours at work, you deserve a week of total relaxation. Now, where do you go The mountains The beach Maybe somewhere with a lot of excitement, like Las Vegas Table contains the three alternatives and attribute values for each, some of which are not available in terms of money.
Table Data for Problem
Use the noncompensatory methods to evaluate these alternatives. Can any be eliminated Can any be selected You will have some extra work to do, beyond Table, before you can complete the analysis.