Question

Try to perform the roof problem analysis for both cases, and then answer the questions.

Pavement Analysis: Lockheed Martin in Huntsville has too many potholes in the parking lot next to their missile engineering offices. They solicited two bids for repaving the lot. Roll Tide Paving will put down asphalt pavement for $20,000 and guarantees the surface for ten years. Alabama Concrete will put in a concrete parking lot for $30,000 and guarantee it for 25 years. Lockheed assumes the pavement will last only as long as the guarantee. Their discount rate is 10%. Calibration Analysis NASA has a rocket engine test stand that is out of calibration. Tom's Gauges, a local Huntsville company, put in a bid to recalibrate all the sensors on the test stand for $100,000. NASA estimates the test stand will stay in calibration for 3 years. NASA usually employs HP Calibration Services for this work, but they will charge $250,000. However, the HP approach will keep the stand calibrated for 12 years. Because NASA is part of the federal government, they use a discount rate of 7% for these decisions.

1) For the pavement analysis, what is the correct decision?

Concrete

Asphalt

Don't repave the lot

Close the missile engineering office

2) For the pavement analysis, what is the annual worth of the concrete option?

$3,300

( $3,000 )

( $3,300 )

$3,000

3) For the NASA situation, what should NASA do?

Stop using the test stand

Hire Tom's Gauges

Do nothing

Hire HP Calibration Services

4) What is the annual worth of the calibration performed by HP?

( $31,000)

( $32,000)

( $32,500 )

( $31,500 )

Answer 1

`Solution -1

Lockheed Marthin should use the Concrete pavement in parking lot. Since in the Asphalt pavement bid and concrete pavement bid, there is a difference of only $ 10,000 in the bidding price and the concrete pavement provide guarantee of 25 years , 15 years more than Asphalt pavement. So it is benificial to choose Concrete pavement.

Solution -2

The annual worth of the concrete option is ($3,000) .

Solution -3

The NASA should given bid to the HP Calibation services , since they are providing services from the very long to NASA and their Bid is more worth as compared to the Tom Guages Bid. They are providing 12 years colibration stand service at $2,50,000. Which is more worth than Tom guages 3 years service at $1,00,000.

Solution -4

The annual worth of the HP Calibration service option is ($31,000) .