In the development of a publicly owned, commercial waterfront area, three possibleindependent plans are being considered. Their estimated costs and estimated benefits areas follows.IncrementconsideredIncrementalA (A-C)A (B-A)PlanAB$123,000 135,000 99,00012000Costs24000costsBenefits$ 139,000 150,000 114,000Incremental2500011000BenefitsВ-С1.131.111.15A (B C)1.040.916which plan should be selected?O AO Do nothingO B

B-C ratio = (Present value of expected return from the project / Present value of expected cost…

Answered: In the development of a publicly owned,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You have been asked to perform an economic evaluation of two projects and recommend one of them for implementation. The project parameters are as follows: Project A Project B Discount Rate 4.0% 4.0% Your analysis concludes that: Project Cost $1,000,000 $750,000 Project Life (yrs) 10 15 Elec. Savings Elec. Cost (kWh/yr) ($/kWh) 800,000 600,000 O Project A is preferable, but Project B also has attractive performance. O Project B is preferable, but Project A also has attractive performance. O Project B is preferable and Project A results in a net loss. O Project A is preferable and Project B results in a net loss. $0.12 $0.12 Annual Cost Escalation Rate 1.5% 1.5%
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Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) Q Initial cost Annual benefits B-C ratio A $50,000 $8,000 1.78 Alternative A Alternative B $145,000 $21,000 1.61 $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? Yes 1.78 □
There are two methods under consideration for improving security at a county jail. Select one based on a B/C analysis at an interest rate of 7% per year and a 10-year study period.
The following are methods in economic analysis of public projects except a. benefit-cost ratio b. none of these c. annual cost method d. rate of return method
Only typed answer and please answer correctly
3- Which of the following mutually exclusive projects is the best alternative using the incrementa cost/Benefit analysis with 8% discount rate? Alternative First cost, $ M&O costs, $/year Benefits, $/year Disbenefits, $/year Life, years Project 1 320,000 45,000 110,000 20,000 10 Project 2 750,000 15,000 200,000 40,000 30 Project 3 540,000 35,000 150,000 45,000 20
A county in Tennessee is considering the following public interest project. Initial Cost $22.5M Annual Maintenance Cost $525K EUAB $3.3M Given a useful life of 12 years and an interest rate of 4%, the benefit /cost ratio is _____________________. Group of answer choices 1.01 1.13 1.51 1.67 1.48
D3 answer ASAP please ill give upvote
Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10% Alternative A Initial cost Annual maintenance cost Estimated annual benefit $50,000 $4,000 $10,000 Alternative B Initial cost $30,000 Annual maintenance cost $3,000 Estimated annual benefit $9,000 a. Select A with B/C =1.14 b. Select B with B/C 1.14 OC. Select B with B/C = 0.14 O d. Reject A with B/C = 1.14
6. An alternative has the following cash flows: P50,000 per year a. Benefit ... b. Disbenefit .. c. Initial Cost.. d. M&O Cost .... What is the B/C ratio if the alternative has an infinite life and the interest rate is 6% per year? .P 27,000 per year P 250,000 P 10,000 per year
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09

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