Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 10, Problem 16P
(a):
To determine
Maximum benefit.
(b):
To determine
Minimum cost.
(c):
To determine
Benefit cost ratio.
(d):
To determine
Incremental benefit cost ratio.
(e):
To determine
Largest BC ratio.
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Students have asked these similar questions
The following data are for two mutually exclusive projects:
PW(benefits)
PW(operating and maintenance costs)
PW(capital costs)
Project A
$20,000,000
$5,000,000
$5,000,000
Project B
$15,500,000
$8,000,000
$1,000,000
(a) What is the benefit-cost ratio for Project A (to two decimal points):
Number
(b) What is the benefit-cost ratio for Project B (to two decimal points): Number
(c) What is the modified benefit-cost ratio for Project A (to two decimal points)? Number
(d) What is the modified benefit-cost ratio for Project B (to two decimal points)? Number
(e) What is the benefit-cost ratio for the increment between projects (to two decimal points)? Number
(f) What is the Present Worth of Project A?
Number
(g) What is the Present Worth of Project B?
Number
(h) Which is the preferred project (enter either 'A' or 'B')?
Selection choices for (a): a) 38 b) 46 c) 54 d) 32
Selection choices for (b): a) 20 b) 40 c) 60 d) 80
Selection choices for (c): a) 833.67 b) 533.33 c) 266.67 d) 422.67
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed
below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least 2
projects. Projects 4 and 1 cannot both be selected together. Formulate the problem as a linear program and determine the optimal
solution.
Project
Cost
Net Present Value
$260, 000
$290, 000
1
$750,000
2
$740.000
3
$225,000
$550,000
4
$260,000
$760,000
$300,000
$780,000
Which projects should be selected?
Project 1 will
Project 2 will
Project 3 will
Project 4 will
Project 5 will
What is the total net present value of these projects?
Total net present value
Chapter 10 Solutions
Engineering Economy (17th Edition)
Ch. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Four mutually exclusive projects are being...Ch. 10 - Two municipal cell tower designs are being...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - You have been requested to recommend one of the...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26FECh. 10 - Prob. 27FECh. 10 - Prob. 28FECh. 10 - Prob. 29FECh. 10 - Prob. 30FECh. 10 - Prob. 31FE
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