Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 16, Problem 9P
To determine

Calculate the benefit cost ratio.

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What is the B/C Ratio for a firm considering an investment in a new manufacturing technology? Investment = $2,500,000 Salvage Value = $150,000 MARR = 15% Net Annual Savings = $600,000 Project Life = 10 years Please don't just use excel, please show steps..
Calculate the modified and conventional B-C Ratio using AW in four decimal places. Is the project acceptable?
Three mutually exclusive projects are being considered by Sesame Street Productions (SSP). The project details are provided in the table below. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Use a B/C analysis. SSP uses a MARR of 8%. Calculate the B/C Ratio for each project and enter your answers with two decimal places as 1.23. If there is a zero before the decimal, you must enter it as 0.12. Project A Project B Project C SSP may eliminate project SSP must choose project Just enter the Project name as A, B, or C. Initial Cost Annual Benefits Project life (years) B/C Ratio $500 based on the B/C Analysis. $150 2 without performing an incremental analysis. $450 $150 4 $600 $200 4
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