The B/C ratio for the following cash flow estimates calculated at an interest rate of 10% is .89, which means that the project is currently not justified. What would the maximum first cost be for this project to be justified? Item PW of benefits, $ AW of disbenefits, $/year First cost, $ M&O costs, $/yr Life, years Estimate 3,800,000 45,000 1,200,000 310,000 20 775,723 140,952 863,993 1.092 000

The B/C ratio for the following cash flow estimates calculated at an interest rate of 10% is .89, which means that the project is currently not justified. What would the maximum first cost be for this project to be justified? Item PW of benefits, $ AW of disbenefits, $/year First cost, $ M&O costs, $/yr Life, years Estimate 3,800,000 45,000 1,200,000 310,000 20 775,723 140,952 863,993 1.092 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Given the cash flows and information below, perform an B/C ratio analysis. Assume an MARR of 7% and a life of 10 years. Which alternative do you choose? A B $ 20,007 $ 11,500 $ Initial Cost Benefit/Year $ 3,971 $ 2,440 $ PW of Benefit $ 27,891 $ 17,138 $ B/C 1.39 1.49 O O O O O B B/C A B/C A-D 1.04 B-A 1.26 None of the above / listed. B-D 1.63 C-A 10.84 с D 19,300 $ 14,700 2,880 $ 3,184 20,228 $ 22,363 1.05 C-D -0.46 C-B 0.40 1.52 D-B 1.63 B-C 0.40
Using the incremental B / C analysis (AB/C). Determine the best alternative. Using the incremental rate of return (AROR) analysis. Determine the best alternative. MARR = 10%. First cost O &M Cost/year Benefit/year Salvage value Life in years A 45,000 $4,000 $15,000 $9,000 B $25,000 $1,500 $9,500 $5,000 10 C $35,000 $3,000 $14,000 $7,000 $15,000 $2,000 $8,000 $3,000
do fast.
The two alternatives shown are under consideration for improving security at a facility. Determine which one should be selected, if any, based on a B/C analysis. Consider an interest rate of 7% per year and a 10-year study period. Additional information is provided in Table Q 6(b). Page 4 of 5 Table Q 6(b) Alternative 1: Extra Cameras | Alternative 2: New Sensors First cost, $ Annual O&M cost, $ 38000 87000 49000 64000 Annual benefits, $ Annual disbenefits, $ 110000 160000 26000
I need the answer in 10 minutes please
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%
Answer ASAP
Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an Interest rate of 9.00% per year to determine which location to select, if any. (Round the final answer to three decimal places.) Location Initial Cost, $ Annual Cost, $ per Year Disbenefits, $ per Year Life, Years The AB/C ratio is -928888.889 ✪ Select location. N North N 1,360,000 480,000 70,000 South S 2,900,000 400,000 45,000 0
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.
5,6,7 search Saved Help S GE
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