A dam was built with a construction cost of Rp. 20,000,000,000 in the first year, while in the second year the construction and equipment costs of Rp. 40,000,000,000. During operation the dam will require an operational cost of Rp. 300,000,000 every year. In addition, a maintenance fee of Rp. 450,000,000 every year. While the benefits that will be obtained from the various uses of the dam each year are estimated as follows: Electricity generation : Rp. 1,500,000,000 Flood control: Rp. 500,000,000 Watering : Rp. 1,000,000,000 Recreational facilities : Rp. 800,000,000 Calculate the Benefit/Cost Ratio with i = 12% per year from this project if it is estimated that the dam will be used for 20 years and after that there is a salvage value of Rp. 10,000,000,000
A dam was built with a construction cost of Rp. 20,000,000,000 in the first year, while in the second year the construction and equipment costs of Rp. 40,000,000,000. During operation the dam will require an operational cost of Rp. 300,000,000 every year. In addition, a maintenance fee of Rp. 450,000,000 every year. While the benefits that will be obtained from the various uses of the dam each year are estimated as follows: Electricity generation : Rp. 1,500,000,000 Flood control: Rp. 500,000,000 Watering : Rp. 1,000,000,000 Recreational facilities : Rp. 800,000,000 Calculate the Benefit/Cost Ratio with i = 12% per year from this project if it is estimated that the dam will be used for 20 years and after that there is a salvage value of Rp. 10,000,000,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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(engineering economics ) .
A dam was built with a construction cost of Rp. 20,000,000,000 in the first year, while in the second year the construction and equipment costs of Rp. 40,000,000,000. During operation the dam will require an operational cost of Rp. 300,000,000 every year. In addition, a maintenance fee of Rp. 450,000,000 every year. While the benefits that will be obtained from the various uses of the dam each year are estimated as follows:
Electricity generation : Rp. 1,500,000,000
Flood control: Rp. 500,000,000
Watering : Rp. 1,000,000,000
Recreational facilities : Rp. 800,000,000
Calculate the Benefit/Cost Ratio with i = 12% per year from this project if it is estimated that the dam will be used for 20 years and after that there is a salvage value of Rp. 10,000,000,000
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