ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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10. Calculate (a) the conventional B/C ratio, (b) the modified B/C ratio, and (c) the PI for the following cash flow estimates at a discount
rate of 10% per year.
a) 0.91, 0.72, 1.04
Item
PW of benefits, S
AW of disbenefits, S/year
First cost, S
M&O costs, S/year
Life of project, years
b) 1.04, 0.91, 1.21
c) 0.72, 0.91, 0.97
Cash Flow
3,800,000
45,000
1,200,000
300,000
20
d) 1.12, 1.26, 1.04
e) 1.15,0.98. 1.32
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Transcribed Image Text:10. Calculate (a) the conventional B/C ratio, (b) the modified B/C ratio, and (c) the PI for the following cash flow estimates at a discount rate of 10% per year. a) 0.91, 0.72, 1.04 Item PW of benefits, S AW of disbenefits, S/year First cost, S M&O costs, S/year Life of project, years b) 1.04, 0.91, 1.21 c) 0.72, 0.91, 0.97 Cash Flow 3,800,000 45,000 1,200,000 300,000 20 d) 1.12, 1.26, 1.04 e) 1.15,0.98. 1.32
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