• Five water treatment plants (WTPs) have been proposed for a city. Each of the plant have a useful life of years and the interest rate is 10% per year. The benefits and costs of the WTPs are listed below. The useful life of WTPA, WTPB, WTPC, WTPD, and WTPE are 20, 25, 30, 35, and 40 years, respectively. Determine the WTP which is economically best. Use incremental B/C ratio method. Benefits and Costs of 5 WTP (USD millions) WTPA WTPB WTPC WTPD WTPE Capital Investment 15 17 14 16 18 Annual Operation and Maintenance Cost 0.65 0.75 0.63 0.64 0.70 Annual Expected Reduction in Fish Damages 3.0 3.2 1.7 3.1 3.5 Salvage 0.2 0.1 0.3 0.2 0.1

• Five water treatment plants (WTPs) have been proposed for a city. Each of the plant have a useful life of years and the interest rate is 10% per year. The benefits and costs of the WTPs are listed below. The useful life of WTPA, WTPB, WTPC, WTPD, and WTPE are 20, 25, 30, 35, and 40 years, respectively. Determine the WTP which is economically best. Use incremental B/C ratio method. Benefits and Costs of 5 WTP (USD millions) WTPA WTPB WTPC WTPD WTPE Capital Investment 15 17 14 16 18 Annual Operation and Maintenance Cost 0.65 0.75 0.63 0.64 0.70 Annual Expected Reduction in Fish Damages 3.0 3.2 1.7 3.1 3.5 Salvage 0.2 0.1 0.3 0.2 0.1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 13% per year and a study period of 10 years. Alternative C $-46,000 $4,000 $-1,300 $6,000 10 First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life. Years The present worth of alternative C is $1 (Click to select) offers the lower present worth. HELIME BIEN D $-20,000 $-7,500 $-100 $1,300 5 and that of alternative D is $ A
Solve the following problems: 1. Your friend deposits $100,000 into account paying 8% per year. He wants to know how long it will take before the interest makes him a millionaire (i.e. to have one Million dollars).
5
Compare the alternatives below using AW and i = 10% per year D -350,000 -35,000 35,000 ∞ First Cost, $ Annual operating cost, $/year Salvage value, $ Life, years с -150,000 - 10,000 15,000 10
The five mutually exclusive alternatives shown below are under consideration for improving visitor safety and access to additional areas of a national park. If all alternatives are considered to last indefinitely, determine which should be selected on the basis of a rate of return analysis using an interest rate of 10%. A B C D E_ First cost, $ millions -20 -40 -35 -90 -70 Annual M&O cost, $ millions -2 -1.5 -1.9 -1.1 -1.3 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
(engineering economic) Four alternatives with cash flows (million rupiah) as follows: Determine the best alternative based on a 12% MARR using the following methods: (a) Rate of Return; (b) Payback Period
A. An NGO is considering building a school for children in a community with 200 children. Assume that currently, only 83 children attend school. Analysts have estimated that the new school will double school attendance to 166 children. Also, assume that the present social value of each child attending school is $2,000. If the project requires an initial investment of $50k plus an additional $15k per year after the first year until it is completed, and if it takes 4 years to complete, what is its SNPV at a PDR of 7%? Assume that the construction imposes a negative externally of $7k a year due to noise and pollution. Also assume that the benefits start in the 5th year. B. Calculate the SIRR for the above project. C. Explain, why a child attending school has social value
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years с $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $ -117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34 x
Can some one please help me to answer each question correctly? please and thank you.
Example A company is considering two types of equipment for its manufacturing plant. Pertinent data are as follows: Freeze Type A Type B First cost P200,000 P300,000 Annual Operating Cost P32,000 P24,000 D Annual Labor Cost P50,000 P32,000 Insurance and Property Taxes 3% 3% Payroll Taxes 4% 4% Estimated Life TO 10 If the minimum required rate of return is 15%, which equipment should be selected?
Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 8% per year, which alternative has the lower present worth?
Please help.