Given a single alternative for a proposed government project, if the alternative's benefit-cost ratio is 1.4, then the project Should be accepted. Should not be accepted. Should be reevaluated to increase its ratio. Is not good enough for a government project. Show Transcribed Text

Q: 10. Calculate (a) the conventional B/C ratio, (b) the modified B/C ratio, and (c) the PI for the…

A: Benefit-Cost Ratio (B/C ratio) is used in cost-benefit analysis to summarize the overall…

Q: The following data is provided for a PPP project. To the People   To the Government Benefits…

A: The benefit-cost ratio (BCR) is an indicator showing the relationship between the relative costs and…

Q: A local government is considering promoting to urism in the city. It will cost$8,000 to develop a…

A: NPV (net present value) of any project is calculated by subtracting the PV (present value) of…

Q: Required information The following data is provided for a PPP project. To the People Benefits…

A: The benefit-cost ratio (BCR) is an indicator showing the relationship between the relative costs and…

Q: Describe the difficulties involved in the public-project analysis?

A: There are several factors that affects the cost and benefit analyses in public projects. These…

Q: Demonstrate that for this highway construction project, the same B/C ratio is obtained using the…

A: Annual worth: Annual worth comparisons are similar to present worth comparisons, except that at the…

Q: Concept VP of benefits, $ VA of no benefits, $ Initial cost, $ Operation cost and mantenaince by…

A: The cost-benefit ratio provides the cost analyses for decision marking. It states whether an…

Q: Required information The following data is provided for a PPP project. To the People To the…

A: The expression conventional B/C ratio likely implies the Benefit-Cost Ratio (B/C ratio) in the…

Q: The table below shows cash flow estimates for a project. The B/C ratio for the following cash flow…

A: The benefit-cost ratio is calculated as B/C ratio= PW of Benefits-PW of disbenefitsFC+PW of M&O…

Q: Below are the annual costs and benefits of four alternative road projects. Apply the incremental B/C…

A: To find the best alternative, we need to find the B/C ratio of all projects and if the B/C ratio is…

Q: A public sector project will have the following cash flows. Annual benefits = $900,000 $50,000…

A: The Modified Benefit-Cost Ratio (MBCR) is a measure used in cost-benefit analysis to determine the…

Q: In order to improve a certain number of public parks in the city of Los Angeles, a proposed 20 year…

A: Given; First cost= $200000 M&O costs= $25000 Number of new people use the improved parks at an…

Q: An engineer is considering the projects below, all of which can be last indefinitely. If the…

A: We first need to calculate NPV of each option. NPV = Annual Income/ MARR – first cost Machine 1 NPV…

Q: From the information shown for possible location of campgrounds and lodging at a national park,…

A: According to benefit-cost analysis, an alternative is viable if the B/C ratio is greater than or…

Q: Four mutually exclusive revenue alternatives are being compared using the B/C method. Which…

A: The Benefit-Cost Ratio is a financial metric used to evaluate the economic feasibility and…

Q: BENEFIT COST ANALYSIS ASSIGNMENT Calculate the B/C ratio for the following cash flow using…

A: The conventional B/C ratio is calculated as B/C ratio =PW of benefitsPW of cost In a conventional…

Q: Site license or 50 desktop licenses? Option A is to pay $12,000 for a 3-year site license usable by…

A: The equivalent uniform annual cost (EUAC) is the cost that is incurred at the time of gaining…

Q: Below are the annual costs and benefits of four alternative road projects. Apply the incremental B/C…

A: Incremental Benefit-cost ratio analysis is a method to find the most preferred alternative. The…

Q: A major equipment purchase is being considered by Metro Atlanta with a useful life of 8 years. The…

A: Formula:  B/C ratio = Present value of benefit / initial cost

Q: The two alternatives shown are under consideration for improving security at a facility. Determine…

A: Given,  Interest rate-7% Study period-10 Two Alternatives- Alternative 1(Extra Camera) and…

Q: It asks for modified B/C ratio.

A: The formula for calculating an annual payout, A=Pi1+in1+in-1 Here, P is the present value, n…

Q: The following data is provided for a PPP project.     To the People   To the Government Benefits…

A: Benefit-cost ratio : The benefit-cost ratio (BCR) is an indicator showing the relationship between…

Q: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of…

A: The incremental cost-benefit analysis is used to study the difference between the monetary benefits…

Q: PW of Total Costs, AB/C when Compared with Alternative Overall Alternative $ Millions B/C Ratio M N…

A: We are going to use Benefit-Cost analysis ratio to answer this question.

Q: ratio for a city-owned hospital heliport project is 1.7. The initial cost is $0.875 million, annual…

A: Present worth is what a sum of money or a progression of cash flows paid in the future is worth…