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# Enineering Economy, please solve them right! A hospital administrator is faced with the problem of h

### Enineering Economy, please solve them right! A hospital administrator is faced with the problem of h

Enineering Economy, please solve them right!

A hospital administrator is faced with the problem of having a limited amount of funds available for capital projects. He has narrowed his choice down to two pieces of x-ray equipment, since the radiology department is his greatest producer of revenue. The first piece of equipment (Project A) is a fairly standard piece of equipment that has gained wide acceptance and should provide a steady flow of income. The other piece of equipment (Project B), although more risky, may provide a higher return. After deliberation with his radiologist and director of finance, the administrator has developed the following table. Cash Flow per Year (thousands) Probability 0.2 Probability Project A Project B 3,800 2,200 0.5 0.3 1,700 0.5 1.300 0.2 900 0.3 900 Discovering that the budget director of the hospital is taking courses in engineering, the hospital administrator has asked him to analyze the two projects and make his recommendation. Prepare an analysis that will aid the budget director in making his recommendation. Calculate the E(cash inflows) and SD(cash inflows) of the project A Discovering that the budget director of the hospital is taking courses in engineering, the hospital administrator has asked him to analyzo the two projects and make his recommendation Prepare an analysis that will aid the budget director in making his recommendation. Calculate the Efcash inflows) and SD(cash infiows) of the project A E cash inflows)- S (Round to the nearest dolar) SDa(cash inflows) = \$ S(Round to the noarest dollar) Calculate the Ecash inflows) and SD(cash inflows) of the project B. Egcash inflows)- S (Round to the nearest dollar SDgcash infows) \$ (Round to the nearest dolar) Project Yshould be recommended In this problem do isk and roward travel in the same diracton? h the same direction Risk and reward

manish jayant 10-Apr-2020