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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Chapter 10, Problem 12P
To determine
Calculate the benefit cost ratio.
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Students have asked these similar questions
Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots of land, their salvage value and investment cost are identical. A 10-year study period has been specified, and the MARR is 19% per year. Which site should be chosen based on the IRR criterion?
Click the icon to view the alternatives description.
You have been requested to compare four mutually exclusive alternatives using the
B/C method and the results are shown. Which alternative, if any, do you
recommend?
Alternative
X
Z
Q
Equivalent
Total Cost,
$ Million
20
30
50
90
Direct
B/C Ratio
0.75
1.07
1.20
1.11
AB/C Ratio When Compared with Alternative
1.70
1.50
1.21
1.40
1.13
Z
1.00
Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio
method at an Interest rate of 9.00% per year to determine which location to select, if any. (Round the final answer to three decimal
places.)
Location
Initial Cost, $
Annual Cost, $ per Year
Disbenefits, $ per Year
Life, Years
The AB/C ratio is -928888.889 ✪
Select location.
N
North N
1,360,000
480,000
70,000
South S
2,900,000
400,000
45,000
0
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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