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 6P
To determine
Calculate the time period.
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A county will invest $4,200,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning
horizon, an additional $1,000,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is
expected to produce net annual benefits that will decrease by 29% each year. The net annual public benefit in the 1st year is estimated
to be $2,300,000. Determine the B/C ratio for the investment using a 4% MARR.
Click here to access the TVM Factor Table calculator.
B/C =
13.499
Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.
Question 1
You are interested in purchasing a car from the available three options.
CAR-1
CAR-2
CAR-3
First Cost
17856
23456
28678
Operating cost ($/year)
Benefits ($/year)
Disbenefits ($/year)
Life (years)
743
589
321
435
1088
890
85
145
134
12
15
20
Use Incremental B/C analysis to determine which car is better at an interest rate of 9% per year.
Why are benefit cost ratios inappropriate for evaluating alternative projects?
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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- he.3arrow_forwardQ. 3 Large projects, such as a new tunnel under the Hudson, the Big Dig in Boston, the Denver airport, a new military jet, and a natural gas pipeline from Alaska to the Midwest, often take 5 to 15 years from concept to completion. Should benefit and cost estimates be adjusted for the greater influences and impacts of inflation, government regulatory changes, and changing local economic environments? Why or why not? How does the public budget-making process interact with the goal of accurate benefit and cost estimating for these large projects?arrow_forwardProvide a dissemination process to ensure stakeholders are informed and committed to the plan.? (This should also include a clear outline of the dissemination process that will be used to ensure that stakeholders are informed of the plan and how commitment will be generated)arrow_forward
- Why integrating ethics into project research is a crucial task? How check biases and predetermined assumptions on infrastructure within a vastly growing city?arrow_forwardI need help answering number 1arrow_forward1. Use the first four steps of the decision-making process to generally describe the alternatives and identify what economic-related estimates you will need to complete an engineering economy analysis for the president. 2. Identify any noneconomic factors and criteria to be considered in making the alternative selection. 3. During your inquiries about alternative B from its manufacturer, you learn that this company has already produced a prototype molding machine and has sold it to a company in Germany for $3 million (U.S.dollars). Upon inquiry, you further discover that the German company already has unused capacity on the equipment for manufacturing plastic shells.The company is willing to sell time on the equipment to Innovations immediately to produce its own shells for U.S.delivery. This could allow immediate market entry into the United States.Consider this as alternative C,and develop the estimates necessary to evaluate C at the same time as alternatives A and B.arrow_forward
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