Indicate which of the Principles of Engineering Economy listed in the text best
ID: 1224191 • Letter: I
Question
Indicate which of the Principles of Engineering Economy listed in the text best applies to the situation given( Please match the statement on the above with the principals on the right)
STATEMENTS
Consider the impact of future events
Leave the situation as it is (do nothing)
Excluding identical outcomes for all alternatives from analysis
Long term financial interests of the owners
Deciding which site to increase generation on a public power project.
PRINCIPALS
a.
Principle 2: Focus on the difference
b.
Principle 7: Revisit your decisions
c.
Principle 1: Develop Alternatives
d.
Principle 4: Use a common unit of measure
e.
Principle 5: Consider all relevant criteria
f.
Principle 3: Use a consistent viewpoint.
g.
Principle 6: Make Risk and Uncertainty Explicit.
Explanation / Answer
Consider the impact of future events: REVISIT YOUR DECISSIONS
Leave the situation as it is (do nothing): USE A CONSISTENT VIEWPOINT
Excluding identical outcomes for all alternatives from analysis: FOCUS ON THE DIFFERENCE
Long term financial interests of the owners: MAKE RISK AND UNCERTAINITY EXPLICIT
Deciding which site to increase generation on a public power project: CONSIDER ALL RELEVANT CRITERIA