Dr. Pis a water resources engineer! You will need to be more convincing about the last problem and compose it as a Benefit-Cost ratio analysis! Complete the incremental analysis below - be careful of signage and use examples from homework and the textbook to help you out if needed! Assume same MARR as last example. Brewery BBQ Rave $50,000 $100,000 $12,000 5000 Initial cost Annual benefit 10000 15000 Salvage value 25000 35000 -5000 Life 6 years O The Moon Iis Cheese O Rave O BBQ Brewery

Dr. Pis a water resources engineer! You will need to be more convincing about the last problem and compose it as a Benefit-Cost ratio analysis! Complete the incremental analysis below - be careful of signage and use examples from homework and the textbook to help you out if needed! Assume same MARR as last example. Brewery BBQ Rave $50,000 $100,000 $12,000 5000 Initial cost Annual benefit 10000 15000 Salvage value 25000 35000 -5000 Life 6 years O The Moon Iis Cheese O Rave O BBQ Brewery

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3- Which of the following mutually exclusive projects is the best alternative using the incrementa cost/Benefit analysis with 8% discount rate? Alternative First cost, $ M&O costs, $/year Benefits, $/year Disbenefits, $/year Life, years Project 1 320,000 45,000 110,000 20,000 10 Project 2 750,000 15,000 200,000 40,000 30 Project 3 540,000 35,000 150,000 45,000 20
Process A has fixed costs of $10,000 and unit costs of $4.50 each, and Process B has fixed costs of $25,000 and unit costs of $1.50 each. At what level of annual production would the two processes have the same cost? (a) 50 units (b) 500 units (c) 5000 units (d) 50,000 units?
6. David is opening an Aerial Adventure Park. He has three mutually exclusive design alternatives: Capital investment Annual receipts Annual expenses Design A $175,000 $115,000 $70,000 Design B $350,000 $150,000 $80,000 Design C $300,000 $125,000 $70,000 Market values are negligible. A 10-year study period is to be used and the MARR is 10% per year. Use the FW Method to determine which alternative should be chosen.
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