Example Proposals

The following three proposals are used to show how to develop a set of mutually exclusive alternatives:

  • Proposal P1 is to buy an XYZZY computer, program it to predict the weather, and then sell weather predictions to the local news media.

  • Proposal P2 is to write an additional program for the XYZZY to generate horoscopes, which will be sold at grocery store checkout counters.

  • Proposal P3 is to buy a Cray-ola super computer, develop crystallography software, and then lease running time to university physics departments across the country.

The cash-flow streams over a 10-year study period for each of these proposals have been estimated and are shown in Table 9.4. For simplicity's sake, this chapter (and some later chapters) show ...

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