A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. The crane costs $520,000 and can be sold for $380,000 after 5 years. The cost to operate and maintain the crane is $210,000 per year. Renting the crane costs $310,000 per year including all operating and maintenance costs. Determine the incremental benefit-cost ratio that the contractor should use to decide between buying and renting. Express your answer to two decimal places.

A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. The crane costs $520,000 and can be sold for $380,000 after 5 years. The cost to operate and maintain the crane is $210,000 per year. Renting the crane costs $310,000 per year including all operating and maintenance costs. Determine the incremental benefit-cost ratio that the contractor should use to decide between buying and renting. Express your answer to two decimal places.

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

Health Economics Identify & Define a Community Hospital
Impact of mandatory Phihealth coverage for all person with disability.
how does physical and mental health affect the labor system?
How can the seven deadly sins of CRM failure be used to manage post-pandemic shopping?
If you could create the best transplant system for a country, what regulations would you create to manage the cost and benefits of transplants? answer in three paragraph
Why is there a need for health care reform?
These are given privileges given to all regardless of race,age, sex
What does ILO stand for?
Explain Emerging trends in e-HRM?
CSHIARACTERISTICS OF A GOOD COMPENSATION PLAN
What would be a fixed or variable expense for a hospital?
Health Sector of Pakistan and its Issues.