Q: Authentic Serai Halia is a catering firm that serves variety of authentic traditional Malaysian…
A: Break-even quantity = Fixed cost / (Price - Varibale cost)
Q: Feng Seawater Desalination Systems has established a capital investment limit of $800,000 for next…
A: The following table shows the project cash flow.
Q: When a B/C analysis is conducted, the benefits and costs: (a) Must be expressed in terms of their…
A: Answer - B/C analysis - It is used to evaluate the strength and weakness different options to get…
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: In the question above, it is given that : Initial Cost = $325,000 Research and Entertainment cost =…
Q: The cost of maintaining a permanent monument is expected to be $70,000 now and $70,000 every 10…
A: Given: The cost of maintaining a project is (PV) = $70,000 The future value of this project is (FV)…
Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…
A: Given: B-C ratio=1.4 The annual worth of benefits minus disbenefits =P560,000 Interest rate=6%…
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: Benefit - Cost Ratio = PV of Total Benefits PV of Total Cost In the above example , Benefits are…
Q: The National Park Service is considering two plans for rejuvenating the forest and landscape of a…
A: The CW method will take into the usage of the Present value factors and the concept of the Time…
Q: Consider the following assumptions, field size 640 acres, non-cropped area 5 acres, 2600' total…
A: Answer - Need to find- Statment is true of false Given in the question-
Q: Two designs are suitable for housing track and field events. Design N costs $800,000 with annual…
A: Design N:- Initial Cost = 800,000 Annual Cost = 25,000/ year life = Infinite Design T:- Initial…
Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour…
A: ANSWER
Q: When comparing multiple alternatives, the DPBP can lead to wrong conclusions regarding the maximum…
A: The Discounted Payback Period (DPBP) is the method of measuring and analysing the time which a…
Q: Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of…
A: GIVEN Alternative A B C D Initial cost $62,000 $25,000 $150,000…
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…
A: The continual expenses incurred in the usual day-to-day operations of a business are known as…
Q: An alternative has the following cash flows: Benefits of $30,000 per year, Disbenefits of $14,000…
A: The benefit-cost ratio is inversely related to the present value of cost. It means as the present…
Q: One of two alternatives will be selected to reduce flood damage in a rural community in central…
A: B/C examination for example advantage investigation gives the proportion of…
Q: $30,000 and is considering three possible independent projects. Project A has a present outlay of…
A: *Answer:
Q: Three mutually exclusive designs for a bypass are under consideration. The bypass has a 10-year…
A: To find the optimal range of MARR we need to find the IRR of all the three alternatives . IRR :…
Q: Two remediation options are being considered for a contaminated land area formerly used for…
A: Net present value of the cost for option 1 (NPC1) can be calculated as follows. Net present value…
Q: As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation…
A: Initial cost © is $190,000. Annual cost (AC) is $21,000. The number of people (N) is 20,000. Usage…
Q: A government-funded wind-based electric power generation company in the southern part of the country…
A: First, find the present worth of benefits: In year zero benefit = $45000 In year 5 benefit = $30000…
Q: Two alternative structures are being considered for a specific service. Compare the present worth of…
A: Present value or present worth is the current value of future cash flow streams using a given…
Q: A sewage containment project in Louisiana is expected to require an initialinvestment of $3 million…
A: Given, Expectation on initial investment = $3 million Annual maintenance expenses = $57,000.
Q: The chief engineer at Clean Water Engineering has established a capital investment limit of $710,000…
A: a. Table 1 shows the project cash flow:
Q: Tom, the owner of Burger Palace, determined that the weighted average cost of capital is 8%. He…
A: The MARR should be derived using the risk premium approach. This implies that the project has higher…
Q: Two remediation options are being considered for a contaminated land area formerly used for…
A:
Q: hated capital investment amounts and annual expenses are as follows: Design End-of-Year ER1 ER2…
A: the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate…
Q: Which among these pairs would provide a good market feasibility judgment on a given project? a.…
A: Good market feasibility of a given project is very essential for any project to be successful in the…
Q: State how the opportunity cost sets the MARR when, because of limited capital, only one alternative…
A: MAAR is set due to opportunity cost. The reason is that when firm has limited capital, it can select…
Q: A government-funded renewable energy electric power generation company has developed the following…
A: * SOLUTION :- (9) Given that , Benifit = 60000 in year 0, and 30000 in year 5. Government…
Q: In the Systematic Economic Analysis Technique (SEAT), Step 5 is Compare the alternatives by an…
A: The inductive process can be used to precisely explore an idea or hypothesis to see if it is…
Q: An estimated 6 billion gallons of clean drinking water disappear each day across the United States…
A: a. Table 1 shows the project cash flow:
Q: Alternative locations for an advanced wastewater recycling plant are being evaluated using four…
A: Ratings given are 3, 7, 2, 10 Weights given: 0.4, 0.3, 0.2, 0.1
Q: The travel cost method is capable of estimating both use and non-use values for environmental…
A: When talking about travel cost method, it is widely used to analyze enviornmental quality and it…
Q: There are five independent projects that must be evaluated on the basis of the profitability index.…
A: a. Table 1 shows the project cash flow;
Q: Comparison of five mutually exclusive alternatives is shown. One must be accepted. According to the…
A: * SOLUTION :- The OPTION B ( alternative D ) is correct answer. * Explanation :-
Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs for a…
A: In economics and finance, present value, also known as present discounted value, is the value of an…
Q: The following are methods in economic analysis of public projects except a. benefit-cost ratio b.…
A: Businesses and organizations often have to choose between alternative investment opportunities.…
Q: Due to a restricted budget, a company can only undertake one of the following projects: Project X:…
A: Project X Initial investment = $800,000 Profit in: Year 1 = $400,000 Year 2 = $375,000 Year 3 =…
Q: The cash flows associated with a public-school building repair project are as follows: costs…
A: Given: Benefit=$600,000 Disbenefits=$90000 Costs=$550,000
Q: A recent sensitivity analysis of a public works project indicates that the expected present worth is…
A:
Q: Define the term Net Present Worth in the present worth analysis?
A: Net present worth (NPW) or net present value (NPV) is defined as present worth of the total cash…
Q: plans are underway for a new stadium for a baseball team. City officials question the number and…
A: Break Even Point: It refers to the production point where the total revenue is equal exactly to the…
Q: MKBIC Systems is evaluating four projects A, B, C and D that have risks associated with the…
A: To find the best project we will add all the events of prob. Project EUAW = EUAW * Prob. Project A…
Q: (b) AVILA Construction Sdn Bhd plans to buy a new truck crane. There are THREE (3) alternative…
A: Given information 3 alternatives available L3D is the last 3 digit of the student metric number. It…
Q: An automobile leasing company has a contract with a new car dealer to do major repairs for $720 per…
A: The cost of equipment = $400000 Let the number of cars = x The annual worth with repair $720 = $720x
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A: At the marketplace, alternatives refers to the availability of substitutes of a specfiic good or…
Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs for a…
A:
Q: For a complete and correct incremental B/C analysis method for multiple alternatives, which of the…
A: Benefit cost ratio is obtained by dividing the benefits with the cot of the project. If the benefit…
4. Incremental ROR and B/C methods require the LCM of the two alternatives being compared.
Select one:
True
False
Step by step
Solved in 2 steps
- Determine the process to compare alternatives on an equal basis and select the alternative that is wisest from an economic standpoint?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.If alternatives' useful lives are different, B/C ratio analysis should preferably be based on: Select one: a. ROR b. annual worth c. future worth d. present worth
- Comparison of five mutually exclusive alternatives is shown. One must be accepted. According to the B/C ratio, which alternative should be selected (costs increase from A to E). AB/C Comparison Ratio A versus B 0.75 B versus C 1.4 C versus D 1.3 A versus C 1.1 A versus D 0.2 B versus D 1.9 C versus E 1.2 D versus E 0.9 O a. B O b. D Ос. А O d. E O e. CMore than one correct options are possibleFour mutually exclusive revenue alternatives are being compared using the B/C method. Which alternative, if any, should be selected? Incremental B/C when compared with alternative A OOOO A B с D Alternative ABCD Initial cost 15 18 30 35 B/C ratio vs. "Do Nothing" 1.52 0.92 1.31 1.47 B 0.95 C 0.71 1.85 - D 0.89 1.31 1.35
- SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical Me (VSL) needed to justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).You have been requested to compare four mutually exclusive alternatives using the B/C method and the results are shown. Which alternative, if any, do you recommend? Alternative X Z Q Equivalent Total Cost, $ Million 20 30 50 90 Direct B/C Ratio 0.75 1.07 1.20 1.11 AB/C Ratio When Compared with Alternative 1.70 1.50 1.21 1.40 1.13 Z 1.00Suggest two (2) stakeholders/ groups that may beappropriately represented as: 1. (low interest and low power) and 2. (high interest and high power) when starting a bottled water company
- 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 20Consider the following assumptions, field size 640 acres, non-cropped area 5 acres, 2600' total length center pivot cost of 30,000 with a life expectancy of 15 years, corn selling price of $3.75 per bushel, expected grain yield of 160 bushels per acre. If SDI irrigation costs $675 per acre installed with a life expectancy of 25 years, expected yield of 160 bushels per acre, you would be money ahead to install SDI. True FalseA civil engineer has 2 alternative designs for a house. a. Design 1 calls for a workforce consisting of 5 men each costing P400/day. This design will be finished in 4 months. b. Design 2 calls for a workforce consisting of 10 men each costing P370/day and is expected to be finished in 3 months. In addition, there will be a project engineer who will supervise the work and will be paid P800/day. Disregarding material cost, how much is the total salary expenses for Design 1 and for Design 2? Assume that there are 24 working days in a month.