Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 10, Problem 25P
To determine
Calculated the new incremental cost benefit ratio
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build a modelAn industrial park is being planned for a tract of land near a river. To prevent flood damage to the industrial buildings that will be built on this low-lying land, an earthen embankment can be constructed. The height of the embankment will be determined by an economic analysis of the costs and benefits.The following data have been gathered (Tables 1 and 2). The embankment is expected to last 40 years and will require no maintenance.Whenever the flood water flows over the embarkment, a $310,000 in annual damages occur. The corporation uses an interest rate of 15% a) if they build the embarkment, what height should it have?
Table 1
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Embankment Height Above Roadway (m)
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A retrofitted space-heating system is being
considered for a small office building. The
system can be purchased and installed for
$114,000, and it will save an estimated
340,000 kilowatt-hours (kWh) of electric
power each year over afive-year period. A
kilowatt-hour of electricity costs $0.08. The
market value, additional annual operating and
maintenance expenses are negligible. What is
the benefit-cost ratio of the project if the
general inflation rate is 3% per year? The
market interest rate = (im) is 22% per year,
and the annual savings are expressed in year-
zero dollars. Use the benefit-cost method to
make a recommendation.
The benefit-cost ratio of the system with PW
is___---_?
Question 10:
Two alternatives are being considered as shown below. Based on an MARR of 7%, and an 8-
year analysis period, select the best alternative. Assume identical replacement.
A
в
Initial Cost
(9,200)
(5,000)
Uniform
Annual
Benefit
Useful Life
Analysis
Period
1,850
1,750
8
4
8
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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