Q1. Which is NOT true about Public Sector projects? a. The citizen own the proje
ID: 1205284 • Letter: Q
Question
Q1. Which is NOT true about Public Sector projects?
a. The citizen own the project
b. The size of the investment is generally large
c. Life estimates are generally long (30-50+ years)
d. Profit is estimated and applied on all public sector projects
Q2. A consulting aerospace engineer at Aerospatial estimated AW values for a presently owned, highly accurate steel rivet inserter based on company records of similar equipment.
A challenger has ESL = 2 years and AWC = $-49,000 per year. If the consultant must recommend a replace/retain decision today, should the company purchase the challenger? The MARR is 15% per year.
a. Recommendation now is to replace the defender for the challenger now.
b. Recommendation now is to retain the defender for 3 years, then replace.
c. Recommendation now is to retain the defender for 4 years, then replace.
d. Do nothing for 5 years.
Please explain me why you chose the answer!
If Retained This AW Value, $/Year Number of Years -62,000 -50,000 -47,000 -53,000 -70,000 5Explanation / Answer
Q1 is answered below.
Public sector projects are projects undertaken by the government for providing better amenities to the public, using tax revenues collected by the tax payers. E.g. infrastructure, roads etc.
They are long term projects and involve a lot of money. However, they are owned by none. Neither government nor the public owns it, since it is a mutually beneficial project (a) the citizen owns the project
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