Question: The Athlete's Shop has evaluated two proposals for weight lifting and exercise equipment. A present worth analysis at i = 15% per year of estimated
The Athlete's Shop has evaluated two proposals for weight lifting and exercise equipment. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $440,000 and PW B = $390,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the shop manager and the lead trainer.
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Separately, you have used the four attributes to rate the two equipment proposals on a scale of 0 to 1.0 as shown in the following table. The economic attribute was rated using the PW values.
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Select the better proposal using each of the following methods.
(a) Present worth
(b) Weighted evaluations of the shop manager
(c) Weighted evaluations of the leadtrainer
Importance Score Attribute Manager Trainer Economics Durability Flexibility Maintainability 80 35 30 20 80 80 100 50 Attribute Proposal A Proposal B Economics Durability Flexibility Maintainability 1.00 0.35 1.00 0.25 0.90 1.00 0.90 1.00
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a Select A since PWA is larger b Calculate R j and use manager scores for att... View full answer
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