ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Find A. conventional B/C ratio
B. modified B/C ratio
C. Pl value
A government-funded wind-based electric power generation company
in the southern part of the country has developed the following
estimates (in $1000) for a new turbine farm. The MARR is 10% per year
and the project life is 25 years.
Benefits: $45,000 in year 0; $31,500 in year 2
Government savings: $2,000 in years 1 through 20
Cost: $66,000 in year 0
Disbenefits: $3000 in years 1 through 10
NOTE: This is a multi-part question. Once an answer is submitted, you
will be unable to return to this part.
Calculate the modified B/C ratio.
The modified B/C ratio is
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Transcribed Image Text:Find A. conventional B/C ratio B. modified B/C ratio C. Pl value A government-funded wind-based electric power generation company in the southern part of the country has developed the following estimates (in $1000) for a new turbine farm. The MARR is 10% per year and the project life is 25 years. Benefits: $45,000 in year 0; $31,500 in year 2 Government savings: $2,000 in years 1 through 20 Cost: $66,000 in year 0 Disbenefits: $3000 in years 1 through 10 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Calculate the modified B/C ratio. The modified B/C ratio is
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