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3. Compare the following 2 altrernatives using the Benefit/Cost Ratio method in terms of the Net Equivalent Uniform Annual Worth method. Note: for the present worth method, the analysis period must be the same for both alternatives (i.e., 14 yrs). Alt. A B Construction cost $ 1,450,000 1,600,000 Benefits $/yr 580,000 610,000 Salvage $ 100,000 200,000 Service Life (yrs) 7 14

3. Compare the following 2 altrernatives using the Benefit/Cost Ratio method in terms of the Net Equivalent Uniform Annual Worth method. Note: for the present worth method, the analysis period must be the same for both alternatives (i.e., 14 yrs). Alt. A B Construction cost $ 1,450,000 1,600,000 Benefits $/yr 580,000 610,000 Salvage $ 100,000 200,000 Service Life (yrs) 7 14

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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interest rate = 5% / yr. Please no excel work, I want to see how it is solved BY HAND. Thanks

3. Compare the following 2 altrernatives using the Benefit/Cost Ratio method in terms of the Net Equivalent Uniform Annual Worth method. Note: for the present worth method, the analysis period must be the same for both alternatives (i.e., 14 yrs). Alt. A B Construction cost $ 1,450,000 1,600,000 Benefits $/yr 580,000 610,000 Salvage $ 100,000 200,000 Service Life (yrs) 7 14
Transcribed Image Text:3. Compare the following 2 altrernatives using the Benefit/Cost Ratio method in terms of the Net Equivalent Uniform Annual Worth method. Note: for the present worth method, the analysis period must be the same for both alternatives (i.e., 14 yrs). Alt. A B Construction cost $ 1,450,000 1,600,000 Benefits $/yr 580,000 610,000 Salvage $ 100,000 200,000 Service Life (yrs) 7 14
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