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:Amortized (yearly) cost Estimated Annual Risk of failure[$]Plan[%]Plan A400,0001.50Plan B550,0000.015The 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.1200b) 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.

We are given two landfill construction plans considered by the planning committee- Plan A & Plan…

Answered: Two landfill construction plans are…

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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Question 9. A contractor has a contract to remove and replace the existing landscape and sidewalks around an office building. The work includes demolition of the existing landscaping and sidewallks, importing fill and grading around the office building, constructing new concrete sidewalks, and new landscaping. The contractor uses the cost codes in Figure 2-6. The contractor will perform all of the work except placing the site concrete and the landscaping. The original estimate for the demolition was $30,000, and a $5,000 change order has been approved to remove some unexpected debris found during the demolition. The demolition work has been completed at a cost of $33,562. The original estimate for the fill and grading was $17,500 and a $2,000 change order for importing additional fill to replace the debris has been approved. The fill and grading costs to date are $17,264, and the estimated cost to complete has been estimated at $2,236. The original budget for the labor to pour the…
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7. The Trust for Public Land (TPL) is a national organization that purchases and oversees the improvement of large land sites for government agencies at all levels. All TPL projects are evaluated at 7% per year, and TPL reserve funds earn 7% per year. One of the U.S. states, which has long-term groundwater problems, asked the TPL to manage the purchase of aquifer recharge land and the development of parks on the land. The land will be bought in increments over the next 5 years with $4 million given immediately on purchases. Total annual purchase amounts are expected to decrease 25% each year through year 5 and then finish for this project. The engineers working on the park plan intend to complete all the development over a 3-year period starting in year 4, when the amount budgeted is $550,000. Increases in construction costs are expected to be $100,000 each year through year 6. a) Draw the cash flow for this project. b) If the state plans to make annual payments to TPL in 6 years, what…
2.1 Contingent Valuation Suppose you're tasked with estimating the Willingness to Pay for shoreline erosion prevention in Far Rockaway Queens via a Contingent Valuation survey. The survey pool will be all addresses in the zip code for Far Rockaway, including businesses (excluding government offices). NOTE: The purpose of shoreline erosion prevention is to maintain the shorelines natural ability to handle tides, whereas erosion increases the chances of flooding. Other benefits of erosion prevention are habitat conservation for flora and fauna. NOTE: Erosion prevention often involves reducing both foot and vehicle traffic, and regulating/preventing certain forms of construction and demolition. Additionally, the importation of beach sand from less impacted/impactful areas to support areas with frequent erosion. NOTE: The estimated cost of beach erosion across three potential scenarios is: 1) $50 for 25% prevention. 2) $75 for 50% prevention. or 2) $100 for 75% prevention. 100% prevention…
Question 3 Consider a construction project to build a new bridge. The project manager is tasked with estimating the cost of the project using the analogy estimating technique. The selected analog project is a similar bridge that was completed recently. The cost of the analog project was $2,500,000, and it had a total length of 500 meters. The current project's length is 750 meters. The project manager determines that the cost of the current project will be adjusted based on the length difference between the analog and current projects. Calculate the cost per meter for the analog project.
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.?
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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.
A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,500,000, and $334,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fifth year of its 25-year projected life at a cost of $1,200,000 per occurrence (no resurfacing cost in year 25). Revenues generated from the toll are anticipated to be $2,500,000 in its first year of operation, with a projected annual rate of increase of 1.75% per year due to the anticipated annual increase in traffic across the bridge. Assuming zero market (salvage) value for the bridge at the end of 25 years and a MARR of 11% per year, should the toll bridge be constructed? Also, assume that the initial surfacing…

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