Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 10, Problem 3P
(a):
To determine
Calculate the benefit cos ratio.
(b):
To determine
Calculate the new benefit cos ratio.
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Q7.2.
From the following data, use the conventional B/C ratio for a project which has a 20-year life to
determine if it is economically justified. Use an interest rate of 8% per year.
Consequences
To the People
To the Government
Annual benefits = $90,000 per year
First cost = $750,000
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%3!
Annual disbenefits $10,000 per year Annual cost = $50,000 per year
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%3D
Annual savings = $30,000 per year
From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified.
Use an interest rate of 8% per year.
Consequences
To the People
Annual benefits = $135,000 per year
Annual disbenefits = $10,000 per year
The B/C ratio is
The project is [[(Click to select)
To the Government
First cost = $700,000
Annual cost
Annual savings
$141,000 per year
$30,000 per year
E
=
From the following data, use the conventional B/C ratio for a project that has a 20-year life to determine if it is economically justified.
Use an interest rate of 8% per year.
To the People
Annual benefits $115,000 per year
Annual disbenefits $10,000 per year
=
Consequences
To the Government
First cost = $600,000
Annual cost $33,000 per year
Annual savings $30,000 per year
The B/C ratio is
The project is justified
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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