Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-1 Premixed-Concrete Plant Project continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-1 (continued) Premixed-Concrete Plant Project

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-2 Channel Enlargement for Flash Flood Control continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-2 (continued) Channel Enlargement for Flash Flood Control

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-3 Investing in Circuit Protection to Reduce Probability of Failure continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-3 (continued) Investing in Circuit Protection to Reduce Probability of Failure

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-4 Project Life as a Random Variable continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-4 (continued) Project Life as a Random Variable continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-4 (continued) Project Life as a Random Variable continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-4 (continued) Project Life as a Random Variable

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-5 Project Analysis Using a Probability Tree continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-5 (continued) Project Analysis Using a Probability Tree continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-5 (continued) Project Analysis Using a Probability Tree

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-6 Annual Net Cash Flow as a Continuous Random Variable continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-6 (continued) Annual Net Cash Flow as a Continuous Random Variable

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-7 Probability of an Unfavorable Project Outcome

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-8 Linear Combination of Independent Random Variables continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-8 (continued) Linear Combination of Independent Random Variables continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-8 (continued) Linear Combination of Independent Random Variables

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-9 Project Analysis Using Monte Carlo Simulation continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE 12-9 (continued) Project Analysis Using Monte Carlo Simulation

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE Probabilistic Decision Tree Analysis continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE (continued) Probabilistic Decision Tree Analysis

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE Hytech Industries continued on next slide

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. EXAMPLE (continued) Hytech Industries