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

Section: Chapter Questions

Problem 1QTC

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1. The annual worth for years 1 through infinity of $75,000 now, $25,000 per year in years 1 through 15 and S40,000 per year in years 16 through infinity at a 10% interest per year is closest to: (a) $27,500 (b) $36,000 (c) $44,000 (d) $ 19,500 1. For the estimates in table below, calculate the equivalent annual cost of the project: First Cost, $ -950,000 Replacement Cost, year 2 AOC, $/ year Salvage value, $ -450,000 -600,000 175,000 Life, years 4 Interst Rate % 10
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The following estimates (in $1000 units) have been developed for a new cybersecurity system at Chicago's O'Hare Airport. Calculate the conventional B/C ratio at a discount rate of 10% per year. First cost, $ AW of benefits, $ per year FW (in year 20) of disbenefits, $ M&O costs, $ per year Expected life, years O 1.21 <1.15 1.52 O 1.91 DOCUMENT.pdf 13,000 3,800 6,750 400 20

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