(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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