Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a subst
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Here is the correct question.
A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of P/A, where A= πd²/4. if the load is known with an uncertainty of ±10 percent, the diameter is known within ±5 percent (tolerances), and the stress that causes failure (strength) is known within ±15 percent, determine the minimum design factor that will guarantee that the part will not fail.
Answer:
the minimum design factor that will guarantee that the part will not fail. = 1.434
Explanation:
Looking at the uncertainty; loss of strength must be raised to due to the stress that causes the failure (strength) is known within ±15% uncertainty.
Looking at the uncertainty; the maximum allowable load must be reduced to because the load is known with an uncertainty of ±10.
Looking at the uncertainty; the diameter must be raised to because the diameter is known within an uncertainty of ±5.
The decrease in the maximum allowable stress can be estimated as:
where,
stress
P = load
A = cross-sectional area of the cylinder
∴
replacing P' with and d' with
, we have:
Thus, the uncertainty in diameter and the load of the allowable stress needs to decrease to 0.82045
Now, the minimum design factor that will ascertain that the part will not fail can be computed as:
where;
the design factor =
the design factor = 1.434.
Thus, the minimum design factor that will guarantee that the part will not fail. = 1.434
Answer:
a. project A; because its NPV is about $335 more than the NPV of project B.
Explanation:
As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.
Here we have to determined the net present value for both projects having different required rate of return
So based on the net present value the first option is correct as the project A is more than the project B
Therefore the first option should be accepted
