A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $437,000 with annual operating and maintenance costs of $59,000 for the next 12 years; design B calls for an investment of $346,000 with annual operating and maintenance costs of $99,000 per year for the next 12 years. Fee collections from the residents would again be $75,000 per year. The interest rate is 5%, and no salvage value is associated with either system. Click the icon to view the interest factors for discrete compounding when /= 5% per year. ACCES + (a) Using the benefit-cost ratio BC(), which system should be selected? The PIA-B is. (Round to two decimal places.)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $437,000
with annual operating and maintenance costs of $59,000 for the next 12 years; design B calls for an investment of $346,000
with annual operating and maintenance costs of $99,000 per year for the next 12 years. Fee collections from the residents
would again be $75,000 per year. The interest rate is 5%, and no salvage value is associated with either system.
Click the icon to view the interest factors for discrete compounding when /= 5% per year.
ACTER
(a) Using the benefit-cost ratio BC(), which system should be selected?
The PIA-B is. (Round to two decimal places.)
Transcribed Image Text:← A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $437,000 with annual operating and maintenance costs of $59,000 for the next 12 years; design B calls for an investment of $346,000 with annual operating and maintenance costs of $99,000 per year for the next 12 years. Fee collections from the residents would again be $75,000 per year. The interest rate is 5%, and no salvage value is associated with either system. Click the icon to view the interest factors for discrete compounding when /= 5% per year. ACTER (a) Using the benefit-cost ratio BC(), which system should be selected? The PIA-B is. (Round to two decimal places.)
N
11
12
13
14
15
16
17
18
19
20
Single Payment
Compound
Amount
Factor
(F/P, I, N)
1.7103
1.7959
1.8856
1.9799
2.0789
2.1829
2.2920
2.4066
2.5270
2.6533
Present
Worth Factor
(P/F, I, N)
0.5847
0.5568
0.5303
0.5051
0.4810
0.4581
0.4363
0.4155
0.3957
0.3769
Compound
Amount
Factor
(F/A, I, N)
14.2068
15.9171
17.7130
19.5986
21.5786
23.6575
25.8404
28.1324
30.5390
33.0660
Equal Payment Series
Sinking Present
Fund
Worth
Factor
(A/F, I, N)
0.0704
0.0628
0.0565
0.0510
0.0463
0.0423
0.0387
0.0355
0.0327
0.0302
Factor
(P/A, I, N)
8.3064
8.8633
9.3936
9.8986
10.3797
10.8378
11.2741
11.6896
12.0853
12.4622
Capital
Recovery
Factor
(A/P, i, N)
0.1204
0.1128
0.1065
0.1010
0.0963
0.0923
0.0887
0.0855
0.0827
0.0802
Transcribed Image Text:N 11 12 13 14 15 16 17 18 19 20 Single Payment Compound Amount Factor (F/P, I, N) 1.7103 1.7959 1.8856 1.9799 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 Present Worth Factor (P/F, I, N) 0.5847 0.5568 0.5303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 Compound Amount Factor (F/A, I, N) 14.2068 15.9171 17.7130 19.5986 21.5786 23.6575 25.8404 28.1324 30.5390 33.0660 Equal Payment Series Sinking Present Fund Worth Factor (A/F, I, N) 0.0704 0.0628 0.0565 0.0510 0.0463 0.0423 0.0387 0.0355 0.0327 0.0302 Factor (P/A, I, N) 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 Capital Recovery Factor (A/P, i, N) 0.1204 0.1128 0.1065 0.1010 0.0963 0.0923 0.0887 0.0855 0.0827 0.0802
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