Apply incremental B/C analysis at an interest rate of 8% per year to determine which alternative should be selected. Use a 20-year study period, and assume the damage costs might occur in year 6 of the study period. Alternative A Alternative B Initial cost, S 600,000 800,000 Annual M&O 50,000 70,000 costs, S/year Potential damage 950,000 250,000 costs. S
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- Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 9% per year to determine which location to select, if any. Location Initial Cost, $ Annual Cost, $ per Year Disbenefits, $ per Year Life, Years The AB/C ratio is North N 2,160,000 480,000 70,000 00 South S 2,900,000 445,000 57,000 00Using the incremental B/C analysis (AB/C). Determine the best alternative, i=10% First cost O &M Cost/year Benefit/year Salvage value Life in years A 45,000 $4,000 $15,000 $9,000 B $25,000 $1,500 $9,500 $5,000 10 с $35,000 $3,000 $14,000 $7,000 D $15,000 $2,000 $8,000 $3,000The following estimates (in $1000 units) have been developed for a security system upgrade at Fairbanks International Airport, FAI. Item Cash Flow First cost, $ 13,000 AW of benefits, $ per year 3,800 FW of disbenefits, year 20, $ 6,750 M&O costs, $ per year 400 Life, years 20 Please calculate your dollar values to the nearest whole dollar. Format 0000 No commas. Please calculate your B/C ratios to 2 decimal places. Format 0.00 Treat any disbenefits as negative benefits and not additional costs. a. Calculate the modified B/C ratio (use AW) at a discount rate of 10% APR, compounded daily. b. Is the project justified? O A. No, the B/C ratio is > 1 O B. Yes, the B/C ratio > 1 Please calculate your dollar values to the nearest whole dollar. Format 0000 No commas. c. Determine the minimum/maximum first cost, FC, that is possible to render the project economically unjustified/justified. $
- Given the data for two alternatives, choose the better alternative using the B/C ratio analysis. MARR = 8% (Hint: If using EUAW, change each first cost to annual fırst then do incremental. If using PW, match the cash flows (rebuy Bottom) before subtracting.) Alternative Bottom Тop First Cost $100,000 $140.000 Operating Costs/Yr 50,000 100,000 60,000 Benefits/Yr 120,000 Maintenance/Yr 30,000 25,000 Life in years 10Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 6% per year to determine which location to select, if any. Location North, N South, S Initial cost, $ 1.1 × 106 2.9 × 106 Annual cost, $ per year 480,000 390,000 Disbenefits, $ per year 70,000 40,000 Life, years ∞ ∞The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period. Extra Cameras (EC) New Sensors (NS) 38,000 87,000 49,000 84,000 100,000 87,000 16,000 First cost, $ Annual M&O. $ per year Benefits, $ per year Disbenefits, $ per year The B/C ratio is Select alternative (Click to select)
- The following estimates (in $1000 units) have been developed for a new security system at Chicago's O'Hare Airport. First cost, S 13,000 AW of benefits, $/year FW (in year 20) of disbenefits, $ M&O costs, $/year 3,800 6,750 400 Life of project, years 20 a. Calculate the conventional B/C ratio at a dis- count rate of 10% per year. b. Determine the minimum first cost necessary to make the project economically unjustified.For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company D recently purchased an equipment that costs $40,000, has a life of 4 years and a salvage value of $5,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the annual depreciation charge on the third year?The B/C ratio for the following cash flow estimates calculated at an interest rate of 10% is .89, which means that the project is currently not justified. What would the maximum first cost be for this project to be justified? Item PW of benefits, $ AW of disbenefits, $/year First cost, $ M&O costs, $/yr Life, years Estimate 3,800,000 45,000 1,200,000 310,000 20 775,723 140,952 863,993 1,092,000
- I want these B/C; after tax analysis to be computed3 (20 pts) An engineer is considering the projects below, all of which can be last indefinitely. If the company's MARR is 14% per year, determine which two options should be selected using B/C ratio analysis First Cost 10000 Annual Income Total benefit/yr Total Cost/yr 1500 B/C ratio B C 5000 1000 7500 1400 35000 25000 D 5250 3000 Incremental B/C Analysis ORDER:Tempe Inc. is considering four mutually exclusive public projects. The capital investment requirements, annual operating & maintenance (O&M) costs, and salvage values of these projects are given below. Each project has a useful life of 40 years, and the minimum attractive rate of return for Tempe is 11% per year. Which of the four projects, if any, should be selected? A B C D Capital Investment $21,500,000 $16,800,000 $30,400,000 $25,700,000 Annual Benefit 4,800,000 4,250,000 5,900,000 4,900,000 Annual O&M Cost 1,790,000 1,130,000 2,040,000 1,800,000 Market Value 2,260,000 2,080,000 3,800,000 2,900,000