An airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A present worth

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An airport Baggage Handing Department has evaluated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA= $460,000 and PWB= $395,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the department manager and a senior team supervisor.

Importance Scores Manager Supervlsor Attribute 1. Economics 25 80 35 2. Durability 3. Safety 4. Maintainability 80 30 10


Separately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in the following table. (The economics attribute was rated using the PW values.) 

Value Rating Attribute Proposal A Proposal B 1. Economics 1.00 0.90 2. Durability 3. Safety 4. Maintainability 0.35 0.50


Select the better proposal using each of the following methods:
(a) Weighted evaluation of the department manager
(b) Weighted evaluation of the team supervisor
(c) Present worth

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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