The following estimates (in $1000 units) havebeen developed for a new security system atChicago's O'Hare Airport.First cost, S13,000AW of benefits, $/yearFW (in year 20) of disbenefits, $M&O costs, $/year3,8006,750400Life of project, years20a. Calculate the conventional B/C ratio at a dis-count rate of 10% per year.b. Determine the minimum first cost necessary tomake the project economically unjustified.

a. Benefit cost ratio is calculated as follows. Benefit cost…

Answered: The following estimates (in $1000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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