ality is working on following two mutually exclusive proposals for increasingand optimizing the traffic lighting. Find the best option by using theBenefit/Cost ratio analysis given that the MARR10%.Project-IProject-IIInitial cost ($)900,0001,700,000Annual operating cost ($/ per year)120,00060.000Annual benefit ($ / per year)730,000650,000Annual disbenefit ($ / per year)300,000195,000Life (years)1025

Benefit cost ratio is used for financial analysis of long term projects and it must be more than 1…

is working on following two mutually exclusive proposals for in d optimizing the traffic lighting. Find the best option by mefit/Cost ratio analysis given that the MARR = 10%. Initial cost ($) Project-I Project-II 900,000 1.700,000 Annual operating cost ($/ per year) 120,000 60.000 Annual benefit ($ per year) 730,000 650,000 Annual disbenefit ($ per year) 300,000 195,000 Life (years) 10 25

is working on following two mutually exclusive proposals for in d optimizing the traffic lighting. Find the best option by mefit/Cost ratio analysis given that the MARR = 10%. Initial cost ($) Project-I Project-II 900,000 1.700,000 Annual operating cost ($/ per year) 120,000 60.000 Annual benefit ($ per year) 730,000 650,000 Annual disbenefit ($ per year) 300,000 195,000 Life (years) 10 25

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Five mutually exclusive alternatives are being considered for providing a sewage-treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows (shown): Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B–C ratio is at least 1.0.?
Given the following project alternatives, determine the most economical investment given an MARR of 10% using IRR method. Project A B C D 6.12% -2.8067% -3.394% 2699% Investment 13.69% $ 100,000 $ Annual Profit Useful Life Salvage Value $ 140,500 $ 148,200 $ 27,500 38,600 38,500 $ 98,000 $ 22,100 What is the incremental IRR of the second comparison? 5 5 5 5 $ 10,000 $ $ 14,000 25,600 14,000
Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate equal to the current market rate of return (mid-March 2020) - 7% annually. Show gross and net PV calculations (ROI not necessary): a. Incremental costs for achieving LEED credits: $50,000 b. Year 1 savings: $12,550 c. Year 2 savings: $12,100 d. Year 3 savings: $11,900 e. Year 4 savings: $11,750 f. Year 5 savings: $11,550
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........... A. 1.01 B. 1.67 C. 1.48 D. 1.51.
Without using exel
calculate the Net present value for all three projects, the WACC (discount factor) is 4.25% pick which project is the best one, please show all your working out if possible thankyou and have a nice day :)
Consider the following Table: 1. Draw the chash flow diagrams for (A, B and C) alternatives 2.Compare (A, B and C) alternatives and choose the best one
The NPV of a project when discounted using a discount rate of 6% is positive $ 40,000. When the same project is discounted using a discount rate of 16% the NPV is negative $ 80,000. What is the IRR using linear interpolation A.5.33% B.11.00% C.9.33% D.0%
Solve in 20 min
Consider three mutually exclusive alternatives, each with a 15-year useful life. If the MARR is 12%, which alternative should be selected? Solve the problem by benefit–cost ratio analysis.
4.) Two mutually exclusive alternative public works projects are under consideration. Their respective costs and benefits are included in the table below. Project A has an anticipated life of 35 years, and the useful life of Project B has been estimated to be 25 years. If the interest rate is 9%, which, if either, of these projects should be selected? Capital investment Annual oper. & maint. costs Annual benefit Useful life of project (years) PROJECT A 375,000 60,000 122,500 35 PROJECT B 312,500 55,000 115,000 25
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