need help with this problem, please provide all the equations and answer all parts clearly. thank you long, 20-foot-high levee, would have an investment costof $25,000,000 with annual upkeep costs estimated at$725,000. A new roadway along the top of the levee wouldprovide two major benefits: (1) improved recreationalaccess for fishermen and (2) reduction of the drivingdistance between the towns at opposite ends of theproposed levee by 11 miles. The annual benefit for thelevee has been estimated at $1,500,000. The secondalternative, a channel-dredging operation, would havean investment cost of $15,000,000. The annual cost ofmaintaining the channel is estimated at $375,000. Thereare no documented benefits for the channel-dredgingproject. Using a MARR of 8% and assuming a 25-yearlife for either alternative, apply the incremental B-C ratio(AB/AC) method to determine which alternative shouldbe chosen. (Note: The null alternative, Do nothing, is nota viable alternative.) (10.9) 10-24. In the aftermath of Hurricane Thelma,the U.S. Army Corps of Engineers is consideringtwo alternative approaches to protect a freshwaterwetland from the encroaching seawater during hightides. The first alternative, the construction of a 5-mile

We are given 2 alternatives:The details of alternative 1 are:Investment cost: $25,000,000Annual…

Answered: long, 20-foot-high levee, would have an…

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter11: Environmental Regulation And Sustainability

Section: Chapter Questions

Problem 1QAP

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The international environmental management standard ISO 14000 requires that Oliver, the pollution control officer of BUCENG, must install suitable pollution control equipment. He is considering two of them, one based on the principle of neutralization and the other of precipitation. They cost Php 7,500,000 and Php 4,500,000 respectively; both are expected to last 5 years and have salvage values of Php 1,500,000 and Php 1,050,000 respectively. The chemical needed for the neutralization-based equipment costs Php 500,000 per year, while for the other Php 950,000 per year. Their annual maintenance costs are Php 5,000 and Php 7,500 respectively. Develop a cashflow table to help Oliver visually compare the data pertaining to the two alternatives.
Department of Agriculture is considering three proposals for increasing the capacity of the maindrainage canal in Baguio City.Proposal 1 requires dredging the canal. The state is planning to purchase the dredgingequipment and accessories for $650,000. The equipment is expected to have a 10-year life with a$17,000 salvage value. The annual operating costs are estimated to total $50,000. To control weedsin the canal itself and along the banks, environmentally safe herbicides will be sprayed during theirrigation season. The yearly cost of the weed control program is expected to be $120,000.Proposal 2 is to line the canal walls with concrete at an initial cost of $4 million. The lining isassumed to be permanent, but minor maintenance will be required every year at a cost of $5000. Inaddition, lining repairs will have to be made every 5 years at a cost of $30,000.Proposal 3 is to construct a new pipeline along a different route. Estimates are an initial costof $6 million, annual maintenance…
The following three mutually exclusive alternative proposals are being considered for flood proofing a factory building that is located in an area subject to occasional flooding by a nearby river. 1. Do nothing: Damage to the building in a moderate flood is $11,000 and in a severe flood it is $24,000. 2. Protect the building with a one-time initial expenditure of $20,000 so that the building can withstand moderate flooding without any damage and withstand severe flooding with only a $12,000 damage. 3. Protect the building with a one-time initial expenditure of $32,000 so that the building can withstand any flooding with no damage at all. In any year, there is a 20% probability of moderate flooding and a 10% probability of severe flooding. Using a MARR of 12% per year and a service life of 8 years, determine which of the three alternatives is the most economical. (a) Calculate EUAC values for each scenario (use negative numbers for costs) The expected EUAC for the "Do Nothing"…
1. Two remediation options are being considered for a contaminated land area formerly used for industrial operations. Option 1 involves removing all of the contaminated soil over a two-year period at a cost of 2.2 million per year. Option 2 is to leave the soil in place but treat it with a bioremediation agent at a cost of 960,000/year over a three- year period. Subsequently, the soil would be sampled each for the next five years to ensure the effectiveness of the treatment system. The cost of the sampling program would be 250,000 the first year and 100,000/year for the remaining years. a) Which option has the lowest overall cost at discount rate of 6 percent/year? What is the difference in the total cost between the two options based on NPV? Give your answer both in dollars and as a percentage difference.
Two remediation options are being considered for a contaminated land area formerly used for industrial operations. Option 1 involves removing all of the contaminated soil over a two-year period at a cost of 2.2$ million per year. Option 2 is to leave the soil in place but treat it with a bioremediation agent at a cost of 950,000$/year over a three-year period. Subsequently, the soil would be sampled each year for the next five years to ensure the effectiveness of the treatment system. The cost of the sampling program would be 240,000$ the first year and 120,000 $/year for the remaining four years.a)Calculate the net present value of each option based on a discount rate of 5% .b)Which option has the lowest overall cost? What is the difference in total cost between the two options based on NPV( percentage)?
1. A tank behind Tom’s service station has leaked a large quantity of heating oil into the soil below. If left uncontained,experts estimate a 10% chance that the oil will contaminate local drinking water and cause $3 million worth of repairs, and an additional 0.5% chance that the oil will reach both the local aquifer and neighboring waterways, causing a total of $10million worth of damage. 2.1. If these are the only risk factors, what is the expected value of damage from Tom’s tank? Show your calculations. 2.2. If Tom is willing to pay up to $355,00 to an insurance company to cover this risk, what is Tom’s risk burden? Show your calculations.
Two remediation options are being considered for a contaminated land area formerly used for industrial operations. Option 1 involves removing all of the contaminated soil over a two-year period at a cost of 2.2 million per year. Option 2 is to leave the soil in place but treat it with a bioremediation agent at a cost of 960,000/year over a three- year period. Subsequently, the soil would be sampled each for the next five years to ensure the effectiveness of the treatment system. The cost of the sampling program would be 250,000 the first year and 100,000/year for the remaining years. a) Draw a cash flow diagram for each of the two options.
Two remediation options are being considered for a contaminated land area formerly used for industrial operations. Option 1 involves removing all of the contaminated soil over a two-year period at a cost of 2.2 million per year. Option 2 is to leave the soil in place but treat it with a bioremediation agent at a cost of 960,000/year over a three-year period. Subsequently, the soil would be sampled each for the next five years to ensure the effectiveness of the treatment system. The cost of the sampling program would be 250,000 the first year and 100,000/year for the remaining years.i. Draw a cash flow diagram for each of the two options.ii. Calculate the net present value of each option based on discount rate of 6 percent/year.iii. Which option has the lowest overall cost? iv. What is the difference in the total cost between the two options based on NPV? Give your answer both in dollars and as a percentage difference.
Two remediation options are being considered for a contaminated land area formerly used for industrial operations. Option 1 involves removing all of the contaminated soil over a two-year period at a cost of 2.2 million per year. Option 2 is to leave the soil in place but treat it with a bioremediation agent at a cost of 960,000/year over a three-year period. Subsequently, the soil would be sampled each for the next five years to ensure the effectiveness of the treatment system. The cost of the sampling program would be 250,000 the first year and 100,000/year for the remaining years.Draw a cash flow diagram for each of the two options.a.Calculate the net present value of each option based on discount rate of 6 percent/year.b.Which option has the lowest overall cost? c.What is the difference in the total cost between the two options based on NPV? d.Give your answer both in dollars and as a percentage difference
The state is considering three proposals for increasing the capacity of the main drainage canal in an agricultural region. Proposal A requires dredging the canal. The state is planning to purchase the dredging equipment and accessories for $650,000. The equipment is expected to have a 10-year life with a $17,000 salvage value. The annual operating costs are estimated to total $50,000. To control weeds in the canal itself and along the banks, environmentally safe herbicides will be sprayed during the irrigation season. The yearly cost of the weed control program is expected to be $120,000.Proposal B is to line the canal walls with concrete at an initial cost of $4 million. The lining is assumed to be permanent, but minor maintenance willbe required every year at a cost of $5000. In addition, lining repairs will have to be made every 5 years at a cost of $30,000.Proposal C is to construct a new pipeline along a different route. Estimatesare: an initial cost of $6 million, annual…
The senior management of Mazoon water company from Muscat has recently conducted an online Zoom meeting with its technical experts at Ibri, to discuss the decision of replacing their major water plant at Dunk.What could be the reason for the above decision. a. Sudden failure of the water plant b. To upgrade the existing water plant with latest technology c. Gradual deterioration of the water plant d. All the options
Two landfill construction plans are being considered by a planning committee.They are:1) Plan A: Landfill with a groundwater protection system.2) Plan B: Landfill constructed with a geosynthetic liner to minimize leachates from the landfill and protectgroundwater sources.Annual amortized capital costs and risks of failure for the systems are presented in the table below:The cleanup cost, if the groundwater system should fail, is estimated to be $8,000,000.a) Determine the annual social cost of failure of each of the two plans.b) Determine to total cost per year for the two plans.c) If minimum total annual cost is the criterion for selecting a option, what plan should be chosen? Clearly justifyyour choice.

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