![Business](/tpl/images/cats/ekonomika.png)
An aircraft company is considering using a new lightweight fastener, called the Superlight, to rivet certain sheet metal parts together. These particular items are not safety-of-flight critical, and so the decision of whether to use them is a financial one. The weight savings realized by using Superlights instead of the asic fastener has a net present value of $10 million (M) to the aircraft manufacturer. In this dollar range, assume that the company is a risk-neutral decision maker.
The Superlight fastener has never been used before on a production aircraft, and engineers are wary of its durability. From what little they know of the design and initial lab tests, they have high uncertainty about the number of Superlight fasteners that would need replacement during routine maintenance. They translate this to costs of S300 K with probability of 0.3, $120 K with probability 0.5, and $75 K with probability 0.2. (Label these possible cases High, Moderate, and Low repair cost, for future reference.) These costs include both parts and labor.
The alternative to the Superlight is the Basic fastener, which, although heavier than the Superlight, has been used extensively on past aircraft. Stress engineers feel that the Basic has a "tried and true" performance record: They conclude from past statistics that the repair cost associated with Basic fastener failure is $125 K. In these dollar ranges, assume that the aircraft company is a risk-neutral decision maker.
Required:
What is the certain equivalent for the best alternative?
![answer](/tpl/images/cats/otvet.png)
Answers: 3
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 22:00, hernandezbrandon059
You wish to retire in 13 years, at which time you want to have accumulated enough money to receive an annual annuity of $23,000 for 18 years after retirement. during the period before retirement you can earn 9 percent annually, while after retirement you can earn 11 percent on your money. what annual contributions to the retirement fund will allow you to receive the $23,000 annuity? use appendix c and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
Answers: 1
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 23.06.2019 07:40, Naysa150724
If airlines do not change their prices how else might they try to compete with each other?
Answers: 3
Do you know the correct answer?
An aircraft company is considering using a new lightweight fastener, called the Superlight, to rivet...
Questions in other subjects:
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/fizika.png)
Physics, 23.07.2019 13:00
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/obshestvoznanie.png)
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/obshestvoznanie.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/obshestvoznanie.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 23.07.2019 13:00