290 CHAPTER 8: CHOOSING THE BEST ALTERNATIVE
EXAMPLE 8-4
A pressure vessel can be made out of brass, stainless steel, or titanium. The first cost and
expected life for each material are:
Brass
Stainless Steel
Titanium
Cost
$100,000
$175,000
$300,000
Life, in years
4
10
25
The pressure vessel will be in the nonradioactive portion of a nuclear power plant that is
expected to have a life of 50 to 75 years. The public utility commission and the power company
have not yet agreed on the interest rate to be used for decision making and rate setting. Build a
choice table for the interest rates to show where each material is the best.