Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Question
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Chapter 10, Problem 14P

(a):

To determine

Calculate the benefit cost ratio.

(b):

To determine

Calculate the change in benefit cost ratio.

(c):

To determine

Best alternative.

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Students have asked these similar questions
Why are benefit cost ratios inappropriate for evaluating alternative projects?
Cost-effectiveness analysis (CEA) differs from benefit/cost analysis (B/C) in that: (a) CEA cannot handle multiple alternatives (b) CEA compares alternatives on the basis of a specific outcome rather than solely on monetary units (c) CEA cannot handle independent alternatives (d) CEA is more time consuming and resource intensive
Where is the salvage value placed in a conventional B/C ratio? Why? How is it handled mathematically?
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