1. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-1 Solution for Annual Revenue (Example 12-1)

2. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-2 Solution for AW (Example 12-1)

3. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-3 Expected Equivalent Annual Cost (Example 12-2)

4. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-4 Expected Equivalent Annual Cost (Example 12-3)

5. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-5 Calculation of E(PW) and E[(PW) 2 ] (Example 12-4)

6. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-1 Spreadsheet Solution, Example 12-4

7. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-2 Probability Tree Diagram for Example 12-5

8. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-6 Calculation of E(PW) and E[(PW) 2 ] (Example 12-5)

9. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-3 Probabilistic Cash Flows over Time (Example 12-6)

10. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-7 Calculation of E(F k ) and V(F k ) (Example 12-8)

11. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-8 Probability Distribution for Useful Life

12. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-9 Assignment of Random Numbers

13. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-10 Random Normal Deviates (RNDs)

14. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-4 Normally Distributed Annual Cash Flow

15. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-11 Example of the Use of RNDs

16. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-12 Monte Carlo Simulation of PW Involving Four Independent Factors (Example 12-9)

17. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-5 Monte Carlo Simulation Using a Spreadsheet, Example 12-9

18. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-6 Plot of Cumulative Average PW to Determine whether Enough Simulation Trials Have Been Run

19. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-7 Histogram Showing Distribution of PW for 1,000 Simulation Trials

20. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-13 Simulation Results for Three Mutually Exclusive Alternatives

21. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-8 Graphical Summary of Computer Simulation Results

22. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-9 Deterministic Replacement Example

23. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-14 Monetary Outcomes and Decisions at Each Point — Deterministic Replacement Example of Figure 12-9 a

24. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-15 Decision at Each Point with Interest = 25% per Year for Deterministic Replacement Example of Figure 12-9

25. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-10 Single-Stage Decision Tree (Example 12-10)

26. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 12-11 Hytech Industries Example

27. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 12-16 Decision Tree Endpoint Evaluation

28. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE P12-7 Three Generator Designs for Problem 12-7

29. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure P12-12 Probability Tree Diagram for Problem 12-12

30. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE P12-17 Estimates for Problem 12-17

31. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure P12-22 Simulation Results for Problem 12-22

32. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure P12-23 Decision Tree Diagram for Problem 12-23

33. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure P12-25 Decision Tree Diagram for Problem 12-25