Ncees pe hb 1.1, p. 39, 44. Thank you. I like these random videos for my PE study. I have a plan and materials which I use. When a random video like this pops up I treat it as a pop-quiz (surprise) regardless of the topic I study at the moment. The idea is: if I do well on pop-quiz I should know the material especially since the problem comes out of nowhere and I am expected to solve it "on the spot" with what knowledge and refs I have. No time to review material -- just solve it to prove myself that I am competent. What a mean problem! And I love it. Will have to give it another shot tomorrow. Update: redid the problem. The ref doesn't properly define how mathematics of B/C work so either this problem is above and beyond PE scope or we need to memorize (not always a good idea as memory can fail under pressure) how B/C gets applied on exam. Any advice Cody ?
That’s exactly what I did for the FE. I’m glad these videos really help. Good luck on your exam! Yeah, the reference is very vague. I’m a little confused by your question so feel free to reply again if this doesn’t answer your question. If the investment is beneficial for the investor, the Benefit-Cost Ratio will be >1 as in, it will have more benefits than costs. In this problem, we are evaluating if the investment (repairing) is beneficial for the investor (the city). The annual costs are benefits because you save money if you repair it. We subtract out the salvage value from the initial costs to find the total costs. Did that clear it up?
@@codysims7465 Hey Cody. To me the benefits are the savings on the annuals costs and the increased salvage value. The costs would be the 80000 + the actual maintenance costs, right? By this logic, you would get an answer less than 1. Let me know what you think.
@@codysims7465 thanks Cody. Would be great to standardize live session schedule. This will have 2 benefits: . Give us something routinely to do. Routine is ideal for tackling PE exam prep, . Give you extra exposure (PR) by us adding it into our calendars with a tag "CEA"
Ncees pe hb 1.1, p. 39, 44.
Thank you. I like these random videos for my PE study. I have a plan and materials which I use. When a random video like this pops up I treat it as a pop-quiz (surprise) regardless of the topic I study at the moment. The idea is: if I do well on pop-quiz I should know the material especially since the problem comes out of nowhere and I am expected to solve it "on the spot" with what knowledge and refs I have. No time to review material -- just solve it to prove myself that I am competent.
What a mean problem! And I love it. Will have to give it another shot tomorrow.
Update: redid the problem. The ref doesn't properly define how mathematics of B/C work so either this problem is above and beyond PE scope or we need to memorize (not always a good idea as memory can fail under pressure) how B/C gets applied on exam. Any advice Cody ?
That’s exactly what I did for the FE. I’m glad these videos really help. Good luck on your exam! Yeah, the reference is very vague. I’m a little confused by your question so feel free to reply again if this doesn’t answer your question. If the investment is beneficial for the investor, the Benefit-Cost Ratio will be >1 as in, it will have more benefits than costs. In this problem, we are evaluating if the investment (repairing) is beneficial for the investor (the city). The annual costs are benefits because you save money if you repair it. We subtract out the salvage value from the initial costs to find the total costs. Did that clear it up?
@@codysims7465 Hey Cody. To me the benefits are the savings on the annuals costs and the increased salvage value. The costs would be the 80000 + the actual maintenance costs, right? By this logic, you would get an answer less than 1. Let me know what you think.
Is a B/C = 1 a breakeven case ?
When will you post the next live session?
I think we’re shooting for some time mid next month but we’re still working out the details.
@@codysims7465 thanks Cody. Would be great to standardize live session schedule.
This will have 2 benefits:
. Give us something routinely to do. Routine is ideal for tackling PE exam prep,
. Give you extra exposure (PR) by us adding it into our calendars with a tag "CEA"
@@oleopathic thanks for the insight. I’ll pass it up the ladder!