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Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
Edition 2ISBN: 978-0073376356Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
Edition 2ISBN: 978-0073376356 Exercise 2
Which of the following would be considered noneconomic factors in deciding which type of power plant to build: ( a ) uipment cost; ( b ) rale; ( c ) odwill; ( d ) lvage value; ( e ) blic acceptance; and ( f ) sthetics
Explanation
Verified
Verified
Economic factors are those factors which have direct financial value associated with it. Non-economic factors are those factors which have no direct financial value associated with them.
(a)
Equipment cost is an economic factor because this cost is financial.
(b)
Morale is a non-economic factor because it cannot be expressed in monetary terms.
(c)
Goodwill is a non-economic factor because it cannot be expressed in monetary terms. It is related to credibility of person or firm.
(d)
Salvage value is an economic factor because it is expressed in terms of money.
(e)
Public acceptance is a non-economic factor because it cannot be expressed in monetary terms.
(f)
Aesthetics is a non-economic factor because it cannot be expressed in monetary terms.
(a)
Equipment cost is an economic factor because this cost is financial.
(b)
Morale is a non-economic factor because it cannot be expressed in monetary terms.
(c)
Goodwill is a non-economic factor because it cannot be expressed in monetary terms. It is related to credibility of person or firm.
(d)
Salvage value is an economic factor because it is expressed in terms of money.
(e)
Public acceptance is a non-economic factor because it cannot be expressed in monetary terms.
(f)
Aesthetics is a non-economic factor because it cannot be expressed in monetary terms.
Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank
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