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 29FE
To determine
Calculated the benefit cost ratio.
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The 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
20
Could you please tell me answer to this question, a circled or highlighted answer would be appreciated, thank you.
Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 15% per year:
Initial investment: $200,000
Equipment life: 10 years
Salvage value: $10,000
Annual receipts: $100,000
Annual expenses: $50,000
What is the modified B/C ratio of this equipment?
Click the icon to view the interest and annuity table for discrete compounding when = 15% per year.
Thr modified cost-benefit ratio is
(Round to two decimal places.)
According to the B-C ratio method, the project is
More Info
Single Payment
Compound
Amount
Present
Factor
Worth Factor
To Find F
To Find P
Discrete Compounding; /= 15%
Compound
Amount
Factor
To Find F
Uniform Series
Sinking
Present
Capital
Recovery
Worth Factor
To Find P
Fund
Factor
To Find A
Factor
To Find A
Given P
Given F
Given A
Given A
Given F
Given P
N
FIP
P/F
F/A
PIA
A/F
A/P
1
1.1500
0.8696
1.0000
0.8696
1.0000
1.1500
2
1.3225
0.7561
2.1500
1.6257
0.4651
0.6151
3
1.5209
0.6575
3.4725
2.2832
0.2880
0.4380
4
1.7490
0.5718…
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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- The two alternatives shown are under consideration for improving security at a facility. Determine which one should be selected, if any, based on a B/C analysis. Consider an interest rate of 7% per year and a 10-year study period. Additional information is provided in Table Q 6(b). Page 4 of 5 Table Q 6(b) Alternative 1: Extra Cameras | Alternative 2: New Sensors First cost, $ Annual O&M cost, $ 38000 87000 49000 64000 Annual benefits, $ Annual disbenefits, $ 110000 160000 26000arrow_forward5,6,7 search Saved Help S GEarrow_forwardI submitted the following question already once and recieved a response from an expert that it was incomplete. This is not true as it is straight out of the book. Please review the question again. Question: Use the B/C method to compare four mutually exclusive alternatives for recycling plastic bottles. Make any additional calculations necessary to determine which alternative should be selected.arrow_forward
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