Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a higher total cost than X. If the B/C ratios are 1.2 and 1.0 for alternatives X and Y, respectively, which alternative should be selected? Why

Q: The city government considers investing on a theme park to be located near the shore. The estimated…

A: The benefit-cost ratio is a financial metric that compares the potential benefits of an investment…

Q: QUESTION NO.13 Two relatively inexpensive alternatives are available to reduce potential earthquake…

A: Given: Interest rate=8% Study period=20 years

Q: The B/C ratio is The project is economically not justified

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Q: From the following data, use the conventional B/C ratio for a project that has a 20-year life to…

A: Present Value of Benefits: PVb​=(115,000−10,000)×(1−(1+0.08)^−20​)/0.08PVb​=105,000×9.818149…

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Q: If alternatives' useful lives are different, B/C ratio analysis should preferably be based on:…

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A: The cost-benefit ratio provides the cost analyses for decision marking. It states whether an…

Q: The four mutually exclusive alternatives below are being compared using the B/C method.  What…

A: The objective of the question is to determine the best alternative based on the Benefit-Cost (B/C)…

Q: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of…

A: Cost is the amount of money paid in the production process on rent, wages, interest, and profit. The…

Q: Two people developed first-cut cost estimates to construct a new 130,000 square foot building on a…

A: a. The total cost of construction for A (TCA) can be calculated as follows: The total cost of…

Q: A county will invest $4,100,000 to clean up a chemical spill that occurred following a natural…

A: Benefit-Cost Analysis (BCA) — likewise called CBA or cost-benefit analysis beyond North America — is…

Q: There are five alternatives for improvement of a road. Determine which alternative would be ch

A: Alternatives Annual Benefit Annual Cost A 90,00,000 10,00,000 B 13,00,000 14,00,000 C…

Q: One of two alternatives will be selected to reduce flood damage in a rural community in central…

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A: The initial cost of the project is given to be $6,050,000 and the annual maintenance cost is given…

Q: Two relatively inexpensive alternatives are available for reducing potential earthquake damage at a…

A: The benefit-cost ratio is computed by dividing the present value of the projected benefit by the…

Q: The following functions represent the total benefit (TB) and total cost (TC) of a project as a…

A: Total Benefit (TB) is the total gain that a person or society receives from producing and consuming…

Q: A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital…

A: Let annual M&O cost be M. Then Modified B/C ratio = (PW of annual benefit - PW of annual M&O…

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Q: An alternative has the following cash flows: benefits = $50,000 per year; disbenefits $27.000 per…

A: Information given is as follows:- Benefits = $50,000 per year Disbenefits = $27,000 per year Costs…

Q: In a modified B/C ratio: Select one: a. M&O costs are put in the denominator. b. Dis-benefits are…

A: The benefit-cost ratio is the ratio of the present value of the benefit to the present value of…

Q: BENEFIT COST ANALYSIS ASSIGNMENT Calculate the B/C ratio for the following cash flow using…

A: The conventional B/C ratio is calculated as B/C ratio =PW of benefitsPW of cost In a conventional…

Q: One of two alternatives will be selected to reduce flood damage in a rural community in central…

A: Given the discount rate = 7% Time period = 20 years

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A: B/C analysis i.e. benefit cost analysis compute the ratio of benefits and costs in the similar time…

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Q: In a modified B/C ratio: Select one: a. M&O costs are put in the denominator. b. M&O costs are put in…

A: Benefit Cost Ratio shows the relationship between benefit and cost of an investment so that the…

Q: 2. The cash flows associated with a public- school building repair project are as follows: costs…

A: B/C is the ratio of total benefits to total costs.

Q: The following data is provided for a PPP project. To the People Benefits Disbenefits $140,000 per…

A: The Conventional Benefit-Cost Ratio (B-C ratio) is a financial metric used in project evaluation to…

Q: Which of the following statements is FALSE? In a crowdfunding campaign, an important objective is to…

A: The statement which is false is : A key characteristic of best crowding campaigns is that the…

Q: The small town of Happy Valley has seen a large influx of families with young children in the wake…

A: Given information:- As per given information, benefit to cost ratio if any of the tier options…

Q: From the following data, use the conventional B/C ratio for a project that has a 20-year life to…

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Q: The following data is provided for a PPP project.     To the People   To the Government Benefits…

A: Benefit-cost ratio : The benefit-cost ratio (BCR) is an indicator showing the relationship between…

Q: PW of Total Costs, AB/C when Compared with Alternative Overall Alternative $ Millions B/C Ratio M N…

A: We are going to use Benefit-Cost analysis ratio to answer this question.

Q: Samir studied 5 hours for his first Economics test and his test score was 85; 6 hours for his second…

A: Given, Economic test, If Samir studied for 5 hours for 1st test, he gets the benefit of = 85 marks…

Q: A shopping center is to be built in one of four different cities. The cash flow estimates associated…

A: The conventional B/C ratio is calculated as B/C ratio=AW of benefit -AW of disbenefitsAW of total…

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Q: yst, list

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A: Given that; Interest rate= 10%

Q: A consultant, after 3 months of work, reported that the modified B/C ratio for a city-owned hospital…

A: Discount rate(i)=5% Time(n)=40 years Initial cost=$2.1 million(i.e 2,100,000) Modified B/C ratio=2…