Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 14P
(a):
To determine
Calculate the benefit cost ratio.
(b):
To determine
Calculate the change in benefit cost ratio.
(c):
To determine
Best alternative.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Solve
he.3
Why are benefit cost ratios inappropriate for evaluating alternative projects?
Chapter 10 Solutions
Engineering Economy
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
Knowledge Booster
Similar questions
- Cost-effectiveness analysis (CEA) differs from benefit/cost analysis (B/C) in that: (a) CEA cannot handle multiple alternatives (b) CEA compares alternatives on the basis of a specific outcome rather than solely on monetary units (c) CEA cannot handle independent alternatives (d) CEA is more time consuming and resource intensivearrow_forwardCost-effectiveness analysis (CEA) differs from cost-benefit (B/C) analysis in that: Select one: a. CEA is more time-consuming and resource-intensive b. CEA cannot handle independent alternatives c. CEA expresses outcomes in natural units rather than in currency units d. CEA cannot handle multiple alternativesarrow_forwardWhere is the salvage value placed in a conventional B/C ratio? Why? How is it handled mathematically?arrow_forward
- Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a higher total cost than X. If the B/C ratios are 1.2 and 1.0 for alternatives X and Y, respectively, which alternative should be selected? Whyarrow_forwardexplain it correctlyarrow_forwardIndicate true (T) or False (F) _______Results of economic analysis is always the same regardless of which economic evaluation criterion (such as B/C ratio, IRR, etc.) is used. _______Two transportation services are substitutes if their cross elasticities are positive. _______Travel time costs are mainly dependent on the vertical and horizontal alignments. _______User benefits are achieved from an investment option if it reduces total user costs. _______Traffic mobility improvements will always cut back vehicle emissions.arrow_forward
- Don't provied handwriting solution.arrow_forwardFor a complete and correct incremental B/C analysis method for multiple alternatives, which of the following does the method NOT require? a. Čalculation of the B/C ratio of each alternative b. The identification of all relevant alternatives c. Ranking the order of the projects (smallest to largest denominator) d. Calculation of the B/C ratio for incremental cash flowsarrow_forwardThe following data are for a series of increasingly extensive flood-control projects. Total Cost Per Year Total Benefit Per Year Plan A = Levees $ 10,000 $ 16,000 Plan B = Small Reservoir 24,000 36,000 Plan C = Medium Reservoir 44,000 52,000 Plan D = Large Reservoir 72,000 64,000 For Plan A marginal costs and marginal benefits are Multiple Choice $10,000 and $16,000, respectively. $20,000 and $32,000, respectively. $16,000 and $26,000, respectively. $20,000 and $16,000, respectively.arrow_forward
- First option is "rival" or "non-rival" Second option is "excludable" or "non-excludable" Third option is "greater" or "less" Fourth option is "should" or "should not"arrow_forwardWhy should the government conduct a rigorously benefit-cost analysis of the project?arrow_forwardQuestion # 14: Economic "Sustainability" and Environmental “Impact" Analysis : A country of 150 million Population with a per-capita income (A) of $ 25,000.00/year, Technological Capability Index ( T ) = .70 or 70%, with a skilled workforce (WF) of 75 million people ~ o Calculate the "SUSTAINABILITY IMPACT" and/or Economic viability of that country ?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you