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Three engineers made the estimates shown below for two optional methods by which new construction technology would be implemented at a site for public housing. Either one of the two options or the current method may be selected. Set up a spreadsheet for B/C sensitivity analysis and determine if option 1, option 2 or the do-nothing option is selected by each of the three engineers. Use a life of 5 years and a discount rate of 10% per year for all analyses

Three engineers made the estimates shown below for two optional methods by which new construction technology would be implemented at a site for public housing. Either one of the two options or the current method may be selected. Set up a spreadsheet for B/C sensitivity analysis and determine if option 1, option 2 or the do-nothing option is selected by each of the three engineers. Use a life of 5 years and a discount rate of 10% per year for all analyses

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Exercise Three engineers made the estimates shown below for two optional methods by which new construction technology would be implemented at a site for public housing. Either one of the two options or the current method may be selected. Set up a spreadsheet for B/C sensitivity analysis and determine if option 1, option 2 or the do-nothing option is selected by each of the three engineers. Use a life of 5 years and a discount rate of 10% per year for all analyses Initial cost, $ Cost, $/year Benefits, $/year Disbenefits, $/year Engineer Bob Option 1 Option 2 50,000 90,000 3,000 4,000 20,000 29,000 500 1,500 Engineer Judy Option 1 Option 2 Engineer Chen Option 1 Option 2 75,000 90,000 3,800 30,000 35,000 30,000 1,000 0 5,000 60,000 70,000 3,000 6,000 3,000 35,000 1,000
Transcribed Image Text:Exercise Three engineers made the estimates shown below for two optional methods by which new construction technology would be implemented at a site for public housing. Either one of the two options or the current method may be selected. Set up a spreadsheet for B/C sensitivity analysis and determine if option 1, option 2 or the do-nothing option is selected by each of the three engineers. Use a life of 5 years and a discount rate of 10% per year for all analyses Initial cost, $ Cost, $/year Benefits, $/year Disbenefits, $/year Engineer Bob Option 1 Option 2 50,000 90,000 3,000 4,000 20,000 29,000 500 1,500 Engineer Judy Option 1 Option 2 Engineer Chen Option 1 Option 2 75,000 90,000 3,800 30,000 35,000 30,000 1,000 0 5,000 60,000 70,000 3,000 6,000 3,000 35,000 1,000
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