(Problems 27 to 29) Use the benefit-cost method to determine which of the alternative bridges below should be selected given that the Do-Nothing is an option. Use i= 10% per year: Alternative A 20 50,000 2.2 200,000 infinite *Disbenefits need to be deducted from the benefits First Cost, $ (million) Annual Maintenance Cost, $ per year Annual Benefits, $ per year (million) Annual Disbenefits, $ per year* Life 27. Benefit cost ratio of Alternative A is A) 1.19 B) 0.98 28. Benefit cost ratio of Alternative B is B) 9.09 A) 0.98 C) 9.09 C) 1.19 Alternative B 30 42,000 3.8 175,0000 infinite D) None of the above D) None of the above
(Problems 27 to 29) Use the benefit-cost method to determine which of the alternative bridges below should be selected given that the Do-Nothing is an option. Use i= 10% per year: Alternative A 20 50,000 2.2 200,000 infinite *Disbenefits need to be deducted from the benefits First Cost, $ (million) Annual Maintenance Cost, $ per year Annual Benefits, $ per year (million) Annual Disbenefits, $ per year* Life 27. Benefit cost ratio of Alternative A is A) 1.19 B) 0.98 28. Benefit cost ratio of Alternative B is B) 9.09 A) 0.98 C) 9.09 C) 1.19 Alternative B 30 42,000 3.8 175,0000 infinite D) None of the above D) None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:(Problems 27 to 29)
Use the benefit-cost method to determine which of the alternative bridges below should be selected
given that the Do-Nothing is an option. Use i= 10% per year:
First Cost, S (million)
Annual Maintenance Cost, $ per year
Annual Benefits, $ per year (million)
Annual Disbenefits, $ per year*
Life
200,000
infinite
*Disbenefits need to be deducted from the benefits
27. Benefit cost ratio of Alternative A is
A) 1.19
B) 0.98
Alternative A
20
50,000
2.2
28. Benefit cost ratio of Alternative B is
A) 0.98
B) 9.09
C) 9.09
C) 1.19
29. The best alternative based on the above data is/are
A) Alternative A
B) Alternative B
Alternative B
30
42,000
3.8
175,0000
infinite
D) None of the above
D) None of the above
C) Both Alternatives
D) None
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