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 ObjectivesPurpose: Select from several independent projects when there is a capital investment limit. This chapter will help you:
1. Capital rationingExplain the rationale used in capital rationing among
independent projects.
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| | | 2. Projects with equal livesUse PW analysis to select from several equal-life independent projects.
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| | | 3. Projects with unequal livesUse PW analysis to select from several unequal-life independent projects.
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| | | 4. Linear program modelSolve the capital budgeting problem using linear programming by hand and by computer.
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