Several alternatives are under consideration to enhance security at a county jail. These alternatives are mutually exclusive. Determine which should be selected based on modified B/C analysis using an interest rate of 8% per year and a 12-year study period. Extra Cameras New Sensors Steel Tubing Access Control First Cost, $ 38,000 87,000 99,000 61,000 Maintenance Costs, $/y 49,000 64,000 42,000 38,000 Benefits, $/y 110,000 160,000 74,000 52,000 Disbenefits, $/y 26,000 21,000 32,000 14,000
Several alternatives are under consideration to enhance security at a county jail. These alternatives are mutually exclusive. Determine which should be selected based on modified B/C analysis using an interest rate of 8% per year and a 12-year study period. Extra Cameras New Sensors Steel Tubing Access Control First Cost, $ 38,000 87,000 99,000 61,000 Maintenance Costs, $/y 49,000 64,000 42,000 38,000 Benefits, $/y 110,000 160,000 74,000 52,000 Disbenefits, $/y 26,000 21,000 32,000 14,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box.
- Several alternatives are under consideration to enhance security at a county jail. These alternatives are mutually exclusive. Determine which should be selected based on modified B/C analysis using an interest rate of 8% per year and a 12-year study period.
Extra Cameras |
New Sensors |
Steel Tubing |
Access Control |
|
First Cost, $ |
38,000 |
87,000 |
99,000 |
61,000 |
Maintenance Costs, $/y |
49,000 |
64,000 |
42,000 |
38,000 |
Benefits, $/y |
110,000 |
160,000 |
74,000 |
52,000 |
Disbenefits, $/y |
26,000 |
21,000 |
32,000 |
14,000
|
NO EXCEL
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