Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 5, Problem 55P
To determine
Selection of the project.
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10
Please answer in short and ASAP
The town council of Cato Springs is considering two alternative investments to upgrade and expand its spring-fed recreational area.
The two investment alternatives (A and B) have different costs and will produce different public benefits. The projected costs and
benefits over a 10-year planning horizon for the two alternatives are given below. Using a MARR of 7.0%, which, if either, of the
alternatives should be pursued by the Cato Springs city council?
CF (Benefits for Alt
A)
CF (Benefits for Alt
EOY
CF (Costs for Alt A)
CF (Costs for Alt B)
B)
$7,590,000
$10,310,000
1
$2,240,000
$1,400,000
$3,360,000
$2,200,000
$400,000
$2,596,000
$600,000
$3,755,000
$600,000
$3,003,600
$800,000
$4,056,600
4
$800,000
$3,446,100
$1,000,000
$4,377,300
5
$1,000,000
$3,651,400
$1,200,000
$4,624,800
$1,200,000
$3,876,600
$1,400,000
$4,949,800
7
$1,400,000
$4,135,700
$1,600,000
$5,365,600
8
$1,600,000
$4,506,400
$1,800,000
$5,649,600
9
$1,800,000
$5,458,900
$2,000,000
$6,252,300
10
$2,000,000
$6,987,400…
Chapter 5 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - If a project costs 100,000 and is expected to...Ch. 5 - Refer to Problem 5.2, and answer the following...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Consider the cash flows from an investment...Ch. 5 - Prob. 10P
Ch. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Consider the project balances in Table P5.19 for a...Ch. 5 - Your RD group has developed and tested a computer...Ch. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Geo-Star Manufacturing Company is considering a...Ch. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - Prob. 42PCh. 5 - Two methods of carrying away surface runoff water...Ch. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - Prob. 46PCh. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - Prob. 51PCh. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - Prob. 57PCh. 5 - Prob. 58PCh. 5 - Prob. 59PCh. 5 - Prob. 1STCh. 5 - Prob. 2ST
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