Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 10, Problem 10P
(a):
To determine
Calculate the benefit cost ratio.
(b):
To determine
Calculate the new benefit cost ratio.
(c):
To determine
Reason for same ranking.
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Students have asked these similar questions
in the development of a publicly owned, commercial waterfront area, three possible independent plans are being
considered. Their costs and estimated benefits are given in the table to the right.
a. Which plan(s) should be adopted, if any, if the controlling board wishes to invest any amount required, provided
that the B-C ratio on the required investment is at least 1.0?
b. Suppose that 10% of the costs of each plan are reclassified as disbenefits. What percentage change in the B-C
ratio of each plan results from the reclassification?
c. Comment on why the rank-orderings in (a) are unaffected by the change in (b)
a. Perform the B-C analysis. Fill-in the table below (Round to four decimal places)
B-C ratio
Plan
A
Is the alternative acceptable?
Plan
ARC
А
B
С
PW (5000s)
Costs
$138,000
125,000
106,000
Benefits
$119,000
149,000
139,000
Don't use Ai.
Answer in step by step with explanation
Just need help with part d and e. Not a, b, or c. Thank you.
Chapter 10 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Four mutually exclusive projects are being...Ch. 10 - Two municipal cell tower designs are being...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - You have been requested to recommend one of the...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26FECh. 10 - Prob. 27FECh. 10 - Prob. 28FECh. 10 - Prob. 29FECh. 10 - Prob. 30FECh. 10 - Prob. 31FE
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