The two alternatives shown are under consideration for improving security at a facility. Determine which one should be selected, if any, based on a B/C analysis. Consider an interest rate of 7% per year and a 10-year study period. Additional information is provided in Table Q 6(b).

The two alternatives shown are under consideration for improving security at a facility. Determine which one should be selected, if any, based on a B/C analysis. Consider an interest rate of 7% per year and a 10-year study period. Additional information is provided in Table Q 6(b).

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Description: The two alternatives shown are under consideration for improving security at a facility.Determine which one should be selected, if any, based on a B/C analysis. Consider aninterest rate of 7% per year and a 10-year study period. Additional informati

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

The two alternatives shown are under consideration for improving security at a facility.
Determine which one should be selected, if any, based on a B/C analysis. Consider an
interest rate of 7% per year and a 10-year study period. Additional information is provided
in Table Q 6(b).
Page 4 of 5
Table Q 6(b)
Alternative 1: Extra Cameras | Alternative 2: New Sensors
First cost, $
Annual O&M cost, $
38000
87000
49000
64000
Annual benefits, $
Annual disbenefits, $
110000
160000
26000

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