Required informationThe following data is provided for a PPP project.To the Government$1.8 million now and $200,000 every3 yearsTo the PeopleBenefits$95,000 per year beginning nowCost$35,000 per yearSavings$80000 per yearDisbenefitsCalculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period.The modified B/C ratio is

In financial economics, the ratio of modified B/C takes the maintenance and project operating costs…

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million naw and $200,000 every 3 years Benefits $95,000 per year beginning now Cost Disbenefits $35,000 per year Savings $80000 per year Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is

Required information The following data is provided for a PPP project. To the People To the Government $1.8 million naw and $200,000 every 3 years Benefits $95,000 per year beginning now Cost Disbenefits $35,000 per year Savings $80000 per year Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A shopping center is to be built in one of four different cities. The cash flow estimates associated with each alternative are given below. You will be using the conventional B/C ratio method to determine which city should be selected at an interest rate of 15% per year. One alternative must be selected. The following table shows the details of each alternative. Alternative Benefits, s/year Disbenefits, $/year ERR City1 95 12 8 170 City2 Life, years First cost, $ M&O costs, $/year Please find the following - B/C of City1 ✓ Incremental B/C of City1 vs. City3 30 110 55 12 210 30 City3 90 12 8 160 30 City4 105 15 10 180 25 Based on the incremental B/C analysis applied to all four cities, choose one city among the four cities. A. 1.22 B. City3 C. 0.00 D. City2 E. 2.50 F. 1.00 G.1.19 H.City4 1. City1 J. 2.24 K. 1.48
The federal government is considering three sites in the National Wildlife Preserve for mineral extraction. The cash flows (in millions) associated with each site are given below. Use the B/C method to determine which site, if any, is best, if the extraction period is limited to 5 years and the interest rate is 10% per year. Site A Initial cost, $ Annual cost, $/year Annual benefits, $/year Annual disbenefits, $/year 50 3 20 0.5 Site B 90 4 29 1.5 Site C 200 6 61 2.1
Calculate the conventional B/C ratio for the following cash flow estimates at a discount rate of 10% per year. Is the project justified? Item Estimate PW of Benefits, $ AW of Disbenefits, $/year PW Cost, $ Life, Years 4,150,000 45,000 1,325,000 20
1. Four independent public sector projects A, B, C and D were evaluated using the B/C ratio. The results were 0.85, 1,24, 0.75 and 0.55, respectively. Which among these projects should you recommend and why? State your assumptions. Explain your answer exhaustively.
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.
The following data is provided for a PPP project. Benefits Disbenefits To the People $110,000 per year beginning now $65,000 per year The conventional B/C ratio is Cost Savings Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. To the Government $1.8 million now and $200,000 3 years $95,000 per year
7.43 Five mutually exclusive, direct benefit alternatives are compared using the B/C method. The alternative to select is: a. J b. K c. L d. M Alternative J K LMN Total Investment, $ million 20 25 33 45 49 Overall B/C Ratio AB/C When Compared to Alternative JK L M N 1.02 1.18 1.20 1.12 1.42 0.98 0.89 0.72 0.80 0.08 0.94 0.84 0.89 0.76 1.32 -
From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified. Use an interest rate of 8% per year. Consequences To the People Annual benefits = $135,000 per year Annual disbenefits = $10,000 per year The B/C ratio is The project is [[(Click to select) To the Government First cost = $700,000 Annual cost Annual savings $141,000 per year $30,000 per year E =