A city corporation is considering two alternatives of waste disposal systems for managing city waste i.e. disposing in a landfill which is a permanent investment and setting up a waste treatment plant with a life of 20 years. Choosing landfill has an initial acquisition cost of Rs. 990 lakhs for acquiring land, annual operation and maintenance cost of Rs. 264 lakhs, and revenue of Rs. 120 lakhs per annum from the collection of plastic and other scrap material. There is no salvage value for this alternative since this is a permanent investment. What is the present worth of this alternative at an interest rate of 8% per annum? Note: You are comparing this with an alternative having 20 years of life. Answer:

A city corporation is considering two alternatives of waste disposal systems for managing city waste i.e. disposing in a landfill which is a permanent investment and setting up a waste treatment plant with a life of 20 years. Choosing landfill has an initial acquisition cost of Rs. 990 lakhs for acquiring land, annual operation and maintenance cost of Rs. 264 lakhs, and revenue of Rs. 120 lakhs per annum from the collection of plastic and other scrap material. There is no salvage value for this alternative since this is a permanent investment. What is the present worth of this alternative at an interest rate of 8% per annum? Note: You are comparing this with an alternative having 20 years of life. Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
which projects should be considered as the base alternative and the first-choice alternative.
The sheriff of Los Lunas county along the Arizona- Mexico border asked the county to build a new minimum security detention facility for personscaught while attempting to enter the United States illegally. The construction cost will be $22 million, with annual operating costs of $2.1 million. The new facility will create jobs that produce benefits for many local businesses including realtors, restaurants, etc. The benefits are estimated to be $5 million in years 1 and 2, $2.8 million in year 3, and $1.12 million per year beginning in year 4 and continuing through the 30-year life of the facility. At a discount rate of 8% per year, does the conventional B/C ratio indicate that the project is economically justified?
H3
pls solve this ques with the complete explanation I'll give you multiple upvotes
Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre- existing conditions as indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured Antidipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2,700 $2,000 $2,900 $3,000 $3,100 $3.200 $3.300 $4,000 57,00 $10,000 Everyone joins the poal ad pays the necessary premum in the first year. The clams experience of the customers is faund to be generaly consstent with expeclations of the insurance company. A) What would be the premium In the third year if there is no inflation, based on the company's oxperience from the past year? B) If those customers who have anticipated…
you have been appointed at the National Treasury to guide a technical committee of government charged with conceiving a Special Purpose Vehicle (Project Company) for an imminent Public-Private Partnership (PPP) responsible for delivering a critical Road Infrastructure to ease traffic jam in the city of Nairobi. Adhering to the best Project Finance international practice, how should you advice the Government of Kenya?
The project is to construct a lateral canal that will provide irrigation for 150 ha production area along the ricefields of a town| and it is being considered by the municipality. The locality has two (wet and dry) croppings. A one (1) ha ricefarm yields 90 çavans for rainfed areas. The following costs have been identified. Land: 800 meters long x 6 meters parcel of land at Php 950.00 per ha 4,500,000.00 500,000.00 250,000.00 Construction: Annual O&M (government): Annual O&M (farmer irrigators): Rental receipts from irrigators: 17 çav/ha Convenience to farmers: 500,000.00 Yield increase: 22% Neglecting other factors associated with production yield increase, determine the B/C ratio of the project with a MARR of 10% per year if the project is to be used for 25 years. Is the project acceptable?
What is the 5-year Benefit-Cost-Ratio (BCR) at 10% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.095 OB. 1.145 OC. 1.140 OD 1.045 OE. 1.175
Ali is a Planning engineer considered the following three mutually exclusive investment projects (A, B, and C) at PTUK. He summarized the relevant data provided for these projects as; for project A, the initial investment is -200 , annual return is 22 and the salvage value is 200. For project B, the initial investment is -4000, salvage value is 2600 and the annual return is 620. For project C, the initial investment is -5450, annual retum is 740 and salvage value is 4300. The useful life for these projects is similar which is 5 years, and MARR=10% . Which alternatives are feasible based on their ROR.
Question 4 You are part of the Project Evaluation Committee in ProTiga Bhd., one of the automotive manufacturer in South East Asia. The manufacturer is shifting the focus of its previous "Number One Choice for Local" to "A Leading Electric Vehicle Company in South East Asia". Below are the projects to evaluate under the responsibility of Project Evaluation Committee. a) b) Acquire an existing RM1,3 billion Electric Vehicle Company from China for technology transfer purpose with the annual saving of RM200 million for 10 years. Assemble professional manpower to strengthen the ProTiga Racing Team with investment of RM700,000 and annual saving of RM150,000 for 5 years. The management has considered the expenses required to continue the business of ProTiga Berhad in coming 10 years. Thus, the management has to consider the additional expenses in the annual income with 5% discount rate. Using Net Present Value (NPV) method, determine which project between (a) and (b) that should be given…