Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 10, Problem 23P
You have been requested to recommend one of the mutually exclusive industrial sanitation
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The following estimates (in $1000 units) have
been developed for a new security system at
Chicago's O'Hare Airport.
First cost, S
13,000
AW of benefits, $/year
FW (in year 20) of disbenefits, $
M&O costs, $/year
3,800
6,750
400
Life of project, years
20
a. Calculate the conventional B/C ratio at a dis-
count rate of 10% per year.
b. Determine the minimum first cost necessary to
make the project economically unjustified.
The federal government is considering three sites in the National Wildlife Preserve for mineralextraction. The cash flows (in millions) associated with each site are given below. Use the B/Cmethod to determine which site, if any, is best, if the extraction period is limited to 5 years andthe interest rate is 10% per year.
A proposal to reduce traffic congestion on Jounieh Highway has a B/C
ratio of 1.4. The annual worth of benefits minus disbenefits is $560,000.
What is the first cost of the project if the interest rate is 5% per year and
the project is expected to be perpetual?*
4,000,000
4,588,208
8,000,000
6,666,667
Chapter 10 Solutions
Engineering Economy (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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- The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period. Extra Cameras (EC) New Sensors (NS) 38,000 87,000 49,000 84,000 100,000 87,000 16,000 First cost, $ Annual M&O. $ per year Benefits, $ per year Disbenefits, $ per year The B/C ratio is Select alternative (Click to select)arrow_forwardCould you please tell me answer to this question, a circled or highlighted answer would be appreciated, thank you.arrow_forwardIn order to safeguard the public health, environment, public beaches, water quality, and economy of south San Diego County, California, and Tijuana, Mexico, federal agencies in the United States and Mexico developed four alternatives for treating wastewater prior to discharge into the ocean. The project will minimize untreated wastewater flows that have caused chronic and substantial pollution in the Tijuana River valley, Tijuana River National Estuarine Research Reserve, coastal areas used for agriculture and public recreation, and areas designated as critical habitat for federal and state-listed endangered species. If the costs and benefits are as shown, which alternative should be selected on the basis of a B/C analysis at 6% per year and a 40-year project period? All monetary amounts are in $ million units.arrow_forward
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- If the B/C value is exactly 1.0 or very near 1.0, non-economic factors can assist make the decision for the best alternative. Select one: True Falsearrow_forwardSome of the formal evaluation techniques used by engineers is Economic analysis. Such analyses attempt to compare the public benefits from such projects with the costs of providing them. Economic studies may be used to (give three uses):arrow_forwardThe following estimates (in $1000 units) have been developed for a new cybersecurity system at Chicago's O'Hare Airport. Calculate the conventional B/C ratio at a discount rate of 10% per year. First cost, $ AW of benefits, $ per year FW (in year 20) of disbenefits, $ M&O costs, $ per year Expected life, years O 1.21 <1.15 1.52 O 1.91 DOCUMENT.pdf 13,000 3,800 6,750 400 20arrow_forward
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