3. (16) Find and report the standard or traditional B/C ratio for each project below using an interest rate of 7.0% ifrequired. Projects are not substitutes for each other so no comparison analysis is required.ProjectPurchase / Investment79,00024,00015,0005,000Life yrs12Recurring Costs40,000 (Present Worth)Benefits of Project140,000 (Present Worth)8,800 years 1 thru 5, 7,000 year 6Dis benefits8000 (Present Worth)2.4000 annually13,500 annually150,000(Present Worth) 32,000 annually3.15136,000 (Present Worth)482000 annually

3. (16) Find and report the standard or traditional B/C ratio for cach project below using an interest rate of 7.0% if required. Projects are not substitutes for each other so no comparison analysis is required. Benefits of Project 140,000 (Present Worth) 8,800 years I thru 5,7,000 year 6 Project Purchase/Investment 79,000 Recurring Costs 40,000 (Present Worth) Dis benefits 8000 (Present Worth) 12 4000 annually 13,500 annually 150,000(Present Worth) 32,000 annually 2 24,000 6. 15,000 5,000 3. 15 136,000 (Present Worth) 4 2000 annually

3. (16) Find and report the standard or traditional B/C ratio for cach project below using an interest rate of 7.0% if required. Projects are not substitutes for each other so no comparison analysis is required. Benefits of Project 140,000 (Present Worth) 8,800 years I thru 5,7,000 year 6 Project Purchase/Investment 79,000 Recurring Costs 40,000 (Present Worth) Dis benefits 8000 (Present Worth) 12 4000 annually 13,500 annually 150,000(Present Worth) 32,000 annually 2 24,000 6. 15,000 5,000 3. 15 136,000 (Present Worth) 4 2000 annually

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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