Decision to Accept or Reject a Project
Designers and managers of buildings frequently must decide whether to accept or reject discretionary investments in buildings—investments which may upgrade quality, extend life, lower costs, or increase revenue relative to the status quo. We call these “accept/reject decisions” because a possible alternative is to do nothing. Accept/reject decisions can be contrasted with design decisions, treated in Chapter 19, which require a selection from among alternative designs. For example, we call deciding whether to add storm windows an accept/reject decision and choosing the window style for a new building a design decision.
KeywordsHeat Exchanger Probability Density Function Cash Flow Cumulative Distribution Function Shopping Center
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