BENEFIT COST ANALYSIS ASSIGNMENT Calculate the B/C ratio for the following cash flow using conventional and modified B/C ratio analysis method. Estimates at a discount rate of 10% per year. Is the project justified? Item PW of benefits ($) AW of disbenefits ($/year) First cost ($) M&O costs ($/year) Life (years) Estimate 3,800,000 45,000 1,200,000 300,000 20

BENEFIT COST ANALYSIS ASSIGNMENT Calculate the B/C ratio for the following cash flow using conventional and modified B/C ratio analysis method. Estimates at a discount rate of 10% per year. Is the project justified? Item PW of benefits ($) AW of disbenefits ($/year) First cost ($) M&O costs ($/year) Life (years) Estimate 3,800,000 45,000 1,200,000 300,000 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

BENEFIT COST ANALYSIS ASSIGNMENT
Calculate the B/C ratio for the following cash flow using conventional and modified B/C
ratio analysis method. Estimates at a discount rate of 10% per year. Is the project justified?
Item
PW of benefits ($)
AW of disbenefits ($/year)
First cost ($)
M&O costs ($/year)
Life (years)
Estimate
3,800,000
45,000
1,200,000
300,000
20

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Step 2: Determine the present worth of disbenefits and cost.

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