The conventional B/C ratio estimate of 2.1 was reported to the County Commissioners for a proposed mosquito control program.The person who prepared the report stated that the health benefits were estimated to be $400,000 per year, and that disbenefits of $25,000 per year were used in the calculation. She also stated that the costs for chemicals, machinery, maintenance, and labor were estimated at $150,000 per year. However, sheforgot to list the cost for initiating the program (trucks, pumps, tanks, etc.). If the project has a 10-year study period and an 8%-per-year discount rate, determine the estimated initial cost.

An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,500,000 and annual maintenance of $130,000. Benefits for barges and paddle wheel touring boats are estimated at $820,000 per year. If the project is assumed to be permanent, use theconventional B/C ratio to determine if it is economically justified at 8% per year.

An alternative has the following cash flows: benefits = $50,000 per year; disbenefits $27,000 per year; costs $25,000 per year. The B/C ratio is closest to: 1.04 L 0.92 2.00 0.96

Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a higher total cost than X. If the B/C ratios are 1.2 and 1.0 for alternatives X and Y, respectively, which alternative should be selected? Why

The modified B/C ratio for a city-owned hospital heliport project is 1.7. The initial cost is $0.975 million, annual benefits are $150,000, and the estimated life is 29 years. What is the amount of the annual M&O costs used in the calculation at a discount rate of 6% per year?  The annual M&O costs is $

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

An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,450,000 and annual maintenance of $135,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is assumed to be permanent, and the discount rate is 10% per year. Determine if the Corps should proceed with the project. The B/C ratio is The project is economically not justified

An alternative has the following cash flows: benefits = $50,000 per year; disbenefits = $27,000 per year; costs = $25,000 per year. The B/C ratio is closest to: (a) 0.92 (b) 0.96 (c) 1.04 (d) 2.00

One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 8% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 2, 12, and 18 of the study period. Retention Pond Channel Initial Cost, $ 880,000 3,000,000 Annual Maintenance , $/Year 92,000 30,000 Reduced Flood Damage, $ 200,000 675,000 The AB/C ratio is The alternative that should be selected is the (Click to select) v