a) (5 marks) The values for three alternatives considered against three criteria
ID: 425907 • Letter: A
Question
a) (5 marks) The values for three alternatives considered against three criteria are given in the table below. Which is the preferred alternative if comparing alternatives against each other? (Note: larger values are better) Alternative IdeaMinimum Criterion AB C Standard 12 10 1620 120 100 90150 50 | 60 | 70 100 50 2 b) (5 marks) Two competing proposals for a facility upgrade are being considered, as outlined in the table below, in which both the fixed and variable costs differ. If the upgraded facility has an expected lifetime of ten years, determine the number of operating hours per year for which the cost of the two systems will be equal if the rate of interest is 6% per year. System System Cost Fixed cos $16,000 $20,000 Fixed cost 2 $2,500 $1,600 Salvage value $2,500$4,000 Operating cost $1.50 /hr $1.20 /hrExplanation / Answer
A.
As option C is better in terms of averages and misses in one category by least margin from eligibility it is better than A (Of A and B, directly A is better as both qualify on same criteria)
Criteria A B C Ideal Min 1 12 10 16 20 15 2 120 100 90 150 100 3 50 60 70 75 50 Criteria A B C Ideal Min 1 12 10 16 20 15 (Percentage of Ideal) 60% 50% 80% Only C Criteria A B C Ideal Min 2 120 100 90 150 100 (Percentage of Ideal) 80% 67% 60% Best Qualifies Criteria A B C Ideal Min 3 50 60 70 75 50 (Percentage of Ideal) 67% 80% 93% Just qualifies 2nd option Best Option qualifies for 2,3 2,3 1,3 Average % 69% 66% 78%Related Questions
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