Engineering Economics - AW & ESL Defender

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  • Опубликовано: 7 ноя 2024

Комментарии • 6

  • @muhammadbilalali9412
    @muhammadbilalali9412 Год назад

    how can AW3 is smallest one because of -ve sign it should be largest ........ as in next video when we perform replacement study, due to -ve sign we will assume defender as a numerically largest one & retain it .......... CAN U PLZ EXPLAIN IT MAM

    • @sc_maldonado
      @sc_maldonado  Год назад

      Excuse the confusion in my wording! Yes, in both videos the selected amounts are the 'numerically largest' because they are closer to zero. In this particular example I did say that the ESL is the 'smallest one'... referring to the smallest total AW of costs (not numerically). The closer to zero, the least the cost. Hope this answers your question.

    • @muhammadbilalali9412
      @muhammadbilalali9412 Год назад

      @@sc_maldonado yes mam i understand thanks .... so can i say that if our AW(defender) is > than AW (challenger) we will retain our product & as AW(defender) is < than AW (challenger) we will replace it ......

    • @sc_maldonado
      @sc_maldonado  Год назад

      @@muhammadbilalali9412 correct! Your goal is to select the alternative with the better AW value (numerically largest).

    • @muhammadbilalali9412
      @muhammadbilalali9412 Год назад

      ​@@sc_maldonado thanks mam for your valuable time .... Huge respect

    • @sc_maldonado
      @sc_maldonado  Год назад +1

      @@muhammadbilalali9412 my pleasure, thank you for watching! Feel free to ask further questions.