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WeChat Ltd is planned to build a new branch to serve the public. Only one alternative has been offered with the subsequent data shown in Table 1. With 12% interest rate and 10-year study period, using B/C ratio, determine the advantage cost to the public? Table 1: A cash flow profile Cost Initial cost Annual cost Salvage value Advantages year Disadvantages years Available alternative SAR700,000 SAR120,000 SAR300,000 SAR200,000 SAR20,000 O SAR1,017,039.6 O SAR1,313,337.7 O SAR1,212,231.3 SAR1,110,130.8

WeChat Ltd is planned to build a new branch to serve the public. Only one alternative has been offered with the subsequent data shown in Table 1. With 12% interest rate and 10-year study period, using B/C ratio, determine the advantage cost to the public? Table 1: A cash flow profile Cost Initial cost Annual cost Salvage value Advantages year Disadvantages years Available alternative SAR700,000 SAR120,000 SAR300,000 SAR200,000 SAR20,000 O SAR1,017,039.6 O SAR1,313,337.7 O SAR1,212,231.3 SAR1,110,130.8

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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WeChat Ltd is planned to build a new branch to serve the public. Only one alternative has been offered with the subsequent data shown in Table 1. With 12% interest rate and 10-year study period, using B/C ratio, determine the advantage cost to the public? Table 1: A cash flow profile Cost Initial cost Annual cost Salvage value Advantages year Disadvantages/ years Available alternative SAR700,000 SAR120,000 SAR300,000 SAR200,000 SAR20,000 SAR1,017,039.6 O SAR1,313,337,7 O SAR1,212,231.3 O SAR1,110,130.8 O O 0 O
Transcribed Image Text:WeChat Ltd is planned to build a new branch to serve the public. Only one alternative has been offered with the subsequent data shown in Table 1. With 12% interest rate and 10-year study period, using B/C ratio, determine the advantage cost to the public? Table 1: A cash flow profile Cost Initial cost Annual cost Salvage value Advantages year Disadvantages/ years Available alternative SAR700,000 SAR120,000 SAR300,000 SAR200,000 SAR20,000 SAR1,017,039.6 O SAR1,313,337,7 O SAR1,212,231.3 O SAR1,110,130.8 O O 0 O
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