for Katetutor

Assignment 8 Due: Wed. Nov. 7, 2018 Stevens - Fall 2018

1 of 1

CEE 4200 -- Assignment 8 Due: Wed. Nov. 7, 2018

In textbook (10 pts each)

In Chapter 8: 8.6, 8.13

In Chapter 9: 9.8, 9.23

In Chapter 10: 10.6, 10.28

In Chapter 12: 12.12, 12.25

Stats. 8.1 (20 pts)

In the process of carrying out a replacement assessment for an aging backhoe you’ve decided that a new model should be purchased in four years to get the most value out of the old one. Your boss asks how sure are you? Using the data from the table below, determine the probability that you’ve made the right choice. (See notes from Friday, Nov. 2 for an approach.

Optional test practice (NOT REQUIRED)

8.20, 8.32, 8.35, 9.16, 9.36, 10.10, 10.19, 10.28, 10.43, 12.26, 12.40

Item Existing Backhoe New

Backhoe Purchase price (2015), $ 80,000 90,000 Current Market Value (2018), $ 54,000 90,000 Annual O&M Cost, $/yr 15,000 12,000 Declining balance depreciation rate 1.6/n 1.6/n Standard deviation of Annual Worth, VAW $

3,000 4,000

Number of observations for Annual Worth, nAW

10 10

MARR, % 3 3 Salvage value at Service Life, $ 20,000 25,000 Remaining Service Life, yr 4 6