You have been hired by a financial institution to perform an engineering economi

Question

You have been hired by a financial institution to perform an engineering economic analysis on three products manufactured by a rising star company that the financial institution is considering investing in. The financial institution has decided to invest $450,000 in these three products next quarter, and wants a return of $45,000 at the end of the quarter. The projected profits over the period from Product A, Product B, and Product C are 6%, 7.5%, and 12% respectively. Your client has done some research and insists that the Product B investment shall be twice the amount of Product C investment. a. Represent your investment plan as a system of linear equations. (5 points) b. Represent this system of equations in matrix form. (5 points) c. Solve the matrix problem to determine how much (in dollars) the financial institution should invest in each in product for the quarter. (10 points) I need some help setting this up and putting it into excel.

Explanation / Answer

RSS The Disadvantages of Cost-Benefit Analysis Cost-benefit analysis is defined as the organized thinking before a decision is implemented. The two main methods of cost-benefit analysis are the human capital approach and the willingness to pay (WTP) approach. The human capital approach links people's payments to their initial contribution, while the WTP approach assesses the amount of money a person is willing to risk for a particular service. The main aim of cost-benefit analysis is to weigh the drawbacks and advantages of carrying out a particular action. However, there are a number of disadvantages to consider before doing an analysis. Economic Analysis & Forecasting The economic analysis and the forecast are two powerful tools that businesspeople use to assess the current health and future direction of a company, organization or government. Historical data, mixed with knowledge about current market conditions and available resources are factors that affect the choices that businesspeople make. One analysis examines the strengths and weaknesses of an economy, while the other focuses on an organization's role in it.

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