A state-funded water irrigation project in the province of Davao del Sur for the rice farmers will cost $50,000 as per the winning contractor during the public bidding. The benefits that can be generated at the end of the first year are estimated to be $10,000, increasing at a 10% uniform rate in subsequent years. While the annual operating and maintenance costs is estimated to be $2,000. Using an 8-year study period and a 10% interest rate, determine whether the project is economically attractive utilizing the B/C analysis using Present Worth: a. Conventional b. Modified

ENGR.ECONOMIC ANALYSIS
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3. A state-funded water irrigation project in the province of Davao del Sur for the rice
farmers will cost $50,000 as per the winning contractor during the public bidding. The
benefits that can be generated at the end of the first year are estimated to be $10,000,
increasing at a 10% uniform rate in subsequent years. While the annual operating and
maintenance costs is estimated to be $2,000. Using an 8-year study period and a 10%
interest rate, determine whether the project is economically attractive utilizing the B/C
analysis using Present Worth:
a. Conventional
b. Modified
Transcribed Image Text:3. A state-funded water irrigation project in the province of Davao del Sur for the rice farmers will cost $50,000 as per the winning contractor during the public bidding. The benefits that can be generated at the end of the first year are estimated to be $10,000, increasing at a 10% uniform rate in subsequent years. While the annual operating and maintenance costs is estimated to be $2,000. Using an 8-year study period and a 10% interest rate, determine whether the project is economically attractive utilizing the B/C analysis using Present Worth: a. Conventional b. Modified
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