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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso
Selection From Independent Projects Under Budget Limitation

Learning Objectives

Purpose: Select from several independent projects when there is a capital investment limit.

This chapter will help you:


1. Capital rationing

Explain the rationale used in capital rationing among independent projects.

2. Projects with equal lives

Use PW analysis to select from several equal-life independent projects.

3. Projects with unequal lives

Use PW analysis to select from several unequal-life independent projects.

4. Linear program model

Solve the capital budgeting problem using linear programming by hand and by computer.








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