Davao International Airport has crafted estimates for the upgradıng of security systems. Will the upgrade be accepted? Determine the B/C ratio at an interest rate of 10% per year using the conventional Annual Worth method of the following: a. Benefits are reduced by disbenefits b. Costs are increased by disbenefits Cashflow Amount $13,000,000 $3,800,000 $6,750,000 $400,000 First costs Annual worth of benefits Future Worth of disbenefits Annual operating and Maintenance costs Life 20 years

Davao International Airport has crafted estimates for the upgradıng of security systems. Will the upgrade be accepted? Determine the B/C ratio at an interest rate of 10% per year using the conventional Annual Worth method of the following: a. Benefits are reduced by disbenefits b. Costs are increased by disbenefits Cashflow Amount $13,000,000 $3,800,000 $6,750,000 $400,000 First costs Annual worth of benefits Future Worth of disbenefits Annual operating and Maintenance costs Life 20 years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

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.
A proposal to reduce traffic congestion on Jounieh Highway has a B/C ratio of 1.4. The annual worth of benefits minus disbenefits is $560,000. What is the first cost of the project if the interest rate is 5% per year and the project is expected to be perpetual?* 4,000,000 4,588,208 8,000,000 6,666,667
The federal government is considering three sites in the National Wildlife Preserve for mineralextraction. The cash flows (in millions) associated with each site are given below. Use the B/Cmethod to determine which site, if any, is best, if the extraction period is limited to 5 years andthe interest rate is 10% per year.
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 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 ∞ ∞
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 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480,000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years The AB/C ratio is Select location N
There are two methods under consideration for improving security at a county jail. Select one based on a B/C analysis at an interest rate of 7% per year and a 10-year study period.
The following estimates (in $1000 units) have been developed for a new cybersecurity system at Chicago's O'Hare Airport. Calculate the conventional B/C ratio at a discount rate of 10% per year. First cost, $ AW of benefits, $ per year FW (in year 20) of disbenefits, $ M&O costs, $ per year Expected life, years O 1.21 <1.15 1.52 O 1.91 DOCUMENT.pdf 13,000 3,800 6,750 400 20
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)
From the PW, AW, and FW values shown, the conventional B/C ratio is closest to: (а) 1.27 (b) 1. 33 (c) 1.54 PW, $ AW, $/Year FW, $ First cost 100,000 16,275 259,370 M&O cost 68,798 11,197 178,441 (d) 2. 76 Benefits 245,784 40,000 637,496 (e) Any of the above Disbenefits 30,723 5,000 79,687 a b d e
Alternative Annualized first cost. $/year Annual M&O cost. $/year Annual benefits, $/year Annual disbenefits, $/year Life, years Multiple Choice O O fund both X and Y fund neither fund Y fund X 60,000 90.000 45,000 35,000 110.000 150.000 20,000 45,000 Show Transcribed Text for the two independent projects shown determine which if any should be funded i=10% per year using B/C ratio method.
Give explanation step by step and take a like
Q2: Select best answer, four mutually exclusive cost alternatives been evaluated by the AW which one should be selected: A- $13,562 per year B- $15,002 per year C- $17,322 per year D- $12,000 per year mativa ara