A new product needs 25 labor hours to complete the build for the first unit. If

Question

A new product needs 25 labor hours to complete the build for the first unit. If production operates at a 70% learning curve rate, calculate the labor hours required per unit to produce the 3rd units. produce 3 units. Infinite analysis period A city plans a pipeline to transport water from a distant watershed area to the city. Option 1 is to construct a permanent concrete channel for S8.8 million right now, with annual maintenance cost of S1 2.000 The second option is build a pipeline which will cost S8. 4 million and have an expected life of seventy years without any maintenance requesrt. The city anticipates it will need to keep the water line in service indefinitely. Develop the cash flow diagram for both alts. Present worth technique or annual cash flow technique, which one will you use Show the equations for both alternatives here. According to your calculation, build the choice table and make recommendations.

Explanation / Answer

Y=ax^b Where a= no of hr taken to complete one unit X= no. of unit b= learning Index Y=25*3rd unit^2.4 Where Learning Index= 70% i.e Log7/Log2 .8451/.3010 2.4

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