Two alternatives are being considered for a water resources project. Alternative A has a project lifetime of 40 years. Alternative B has a project lifetime of 30 years. The timeseries of benefits and costs for the projects are provided below. Find the equivalent. present value and equivalent annual value for each project, assuming an 8% interest rate. Which project is preferred from an economic perspective? Alternative Year 10 A B 50 40 Alternative Year 10 A B 10 35 Benefits ($ million) Year 20 Year 30 Year 10 0 10 20 Costs ($ Year 20 0 0 20 15 million) Year 30 10 5 Year 10 0

Two alternatives are being considered for a water resources project. Alternative A has a project lifetime of 40 years. Alternative B has a project lifetime of 30 years. The timeseries of benefits and costs for the projects are provided below. Find the equivalent. present value and equivalent annual value for each project, assuming an 8% interest rate. Which project is preferred from an economic perspective? Alternative Year 10 A B 50 40 Alternative Year 10 A B 10 35 Benefits ($ million) Year 20 Year 30 Year 10 0 10 20 Costs ($ Year 20 0 0 20 15 million) Year 30 10 5 Year 10 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 2 Full explain this question and text typing work only do not ignore this line
For the following 4 options (one must be chosen), what is the smallest MARR for the "Do Nothing" option to be chosen? Option A Year O Cost ($) Years 1-10 Benefit ($) 5.26% 9.59% 7.09 % 10.69% "Do Nothing" 0 O -1,000 153 B -1,500 207 C -2,000 261
Present worth
here are some Namibia issue help me to find a solution please The country is explained as the driest country in Sub-Saharan Africa hence experiences issues with lack of water. Namibia country faces challenges along the line of high poverty, unemployment, and inequality and the economic growth is not sufficient to fix the challenges. Namibia's unemployment rate amounted to nearly 20.59 in 2020 compared to 2016 the unemployment rate was 23.35 which is the highest unemployment rate during the past 10 years. this actively demonstrates that the country willing to fix the unemployment.
QUESTION 7 for th below two machines and based on AW analysis which machine we should select? MARR-10%. Machine A Machine B First cost, $ 100,000 Annual cost, S/year 7,000 Salvage value, $ Life, years 3 infinite Answer the below question: A-the AW for machine A QUESTION 8 For th below two machines and based on AW analysis which machine we should select? MARR-10% Machine A Machine B First cost, $ 135,982 Annual cost, Siyear 8,740 12.308 Salvage value, $ Life, years 3 infinite Answer the below question: B- the AW for machine B QUESTION 9 C-Based on the AW value you got in the previous 2 questions, which machine we should select? type you explanation below For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) B IUS Paragraph M Arial Y 10pt 田饼印园 BE 0) 20,000 9,000 4,000 23,720 4.805- !!! 4
Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid $7,000 $2,250 The PW of the Lead Acid is $ The PW of the Lithium Ion is $ 6 years $0 Lithium Ion $13,000 $2,300 Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. Lead Acid O Lithium lon 9 years $2,600 (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. (Round to the nearest dollar.) (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. The AW of the Lead Acid is $. (Round to the nearest dollar.) The AW of the Lithium Ion is $. (Round to the nearest dollar.) Which alternative should be selected?…
Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the annual worth of this project?
Please no written by hand
Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 $8,000 $4,500 $8,500 $6,000 Annual 0 1,387 914 1,661 935 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% A-B OB-A OA-C OB-C
Economics
Given cash flows for two alternatives as shown in table below, choose the most attractive alternative if MARR = 8%. Year 0 1 2 3 through ∞ Alt. A -$42K $3.6K $3.6K $3.6K Alt. B -$54K $4.7K $4.7K $4.7K Group of answer choices Alt. A Alt. B Select neither Select either