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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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