Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 10, Problem 11P
To determine
Calculate the benefit cost ratio.
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Five mutually exclusive alternatives are being considered for providing a sewage-
treatment facility. The annual equivalent costs and estimated benefits of the alternatives
are as follows:
Alternative
Annual Equivalent (in thousands)
Cost
$1,050
Benefits
$1,110
B
900
$1,810
C
1,230
$1,390
D
1,350
$1,500
E
990
$1,140
Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and
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IBM is considering an environmentally conscious green building at one of its new production facilities. The company will decide among three different green designs for the facility, and each of the final mutually exclusive concepts for the facility results in different costs and savings. These threeconcepts are summarized below. IBM uses 10% per year as its profitability benchmark (hurdle rate) for such comparisons. Which facility concept should be selected?
As part of the rehabilitation of the downtown area of a southern U.S. city, the Parks and Recreation Department expects to develop the
space below several overpasses into basketball, handball, miniature golf, and tennis courts. The estimates are initial cost of $182,000;
life of 20 years and, annual M&O costs of $24,000. The department expects 30,000 people per year to use the facilities an average of
2 hours each. The value of the recreation has been conservatively set at $1.1 per hour. At a discount rate of 10% per year, what is the
B/C ratio for the project?
The B/C ratio is
Chapter 10 Solutions
Engineering Economy (16th Edition) - Standalone book
Ch. 10 - The Adams Construction Company is bidding on a...Ch. 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 - A flood control project with a life of 16 years...Ch. 10 - Prob. 30FECh. 10 - Prob. 31FE
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