Determine the best alternatives for a government project with the following data: PROJECT A B с P250k P320k P350k P100k P135k p180k 2.5 2.37 1.94 ANNUAL BENEFIT ANNUAL COSTS B/C RATIO
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- Calculate the conventional benefit-cost ratio for the alternative: Initial Investment Revenues Costs Salvage Value Useful life MARR Select one: a.1.2960 b.1.3130 c.1.3681 d.1.4659 e.1.2114 250000 80000 22000 50000 9 0.1 17In a feasible set, such as the one shown here, points INSIDE the set are said to be by points ON the frontier. Least-cost abatement curve A" 30 A' A 25 Feasible set E with zero abatement 400 600 Cost of abatement (billions € = cost per tonne abated x gigatonnes abated) Environmental quality, E (amount abated, GtCO,)A county in Tennessee is considering the following public interest project. Initial Cost $22.5M Annual Maintenance Cost $525K EUAB $3.3M Given a useful life of 12 years and an interest rate of 4%, the benefit /cost ratio is _____________________. Group of answer choices 1.01 1.13 1.51 1.67 1.48
- 5. Assume EUAB -SI8,733 ( ia notf). The BenefitCost ratio is closest to a) 1.49 b) 1.45 c) 1.58 d) 1.73 c) 2.19 0241 ) 2.07How can we determine whether the project is acceptable or not?Question 1 You are interested in purchasing a car from the available three options. CAR-1 CAR-2 CAR-3 First Cost 17856 23456 28678 Operating cost ($/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.
- A local government in Virginia is considering three different alternatives for a sewage treatment plant. The type of equipment and technology needed are quite different in each case. The following summarizes the economic data for all the alternatives Alt. B 5,600,000 600,000 1,000,000 Alt. A Alt. C Equipment costs O &M costs/year Annual benefits 4,350,000 450,000 640,000 6,500,000 750,000 1,300,000 The economic life of the project is 40 years. The locality's cost of funds is 8%. Use conventional benefit-cost analysis and incremental analysis to determine which alternative should be recommended. Note that doing nothing is not an alternative.Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) Q Initial cost Annual benefits B-C ratio A $50,000 $8,000 1.78 Alternative A Alternative B $145,000 $21,000 1.61 $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? Yes 1.78 □vered of 10.00 ion Calculate the conventional benefit-cost ratio for the alternative: Initial Investment Revenues Costs Salvage Value Useful life MARR Select one: a.1.3130 b.1.2960 c.1.4659 d.1.3681 e.1.2114 Determine the FDD ( 350000 150000 55000 120000 7 0.1
- 3. Consider the two alternative investments. Year Alt. X Alt. Y -200 -200 +99 +150 +99 -85 +99 +248 Determine the B/C ratio of each alternative Determine which investment is preferable by using incremental benefit- b) cost ratio analysis. Take i= 12% 3.Identify the viewpoint (e.g., budget, governmentunit, citizen, business owner), and categorize thefollowing cash flows as a benefit, disbenefit, orcost:(a) $600,000 annual income to area businessesfrom tourism created by new freshwater reservoir/recreation areaNo ai pls