Question

Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most...

Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most efficient and which one is the most profitable. The market rate is 7.5% per year compounded yearly and inflation runs at 2.75% per year. Alter. Construction cost Annual Benefits Salvage Life (yrs) A $410,000 $260,000 $25,000 35 B $375,000 $220,000 $20,000 30 C $520,000 $280,000 - infinite

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most...
Compare the following 3 alternatives using the incremental benefit/cost ratio method. Determine which is the most efficient and which one is the most profitable. The market rate is 7.5% per year compounded yearly and inflation runs at 2.75% per year. Alter. Construction cost Annual Benefits Salvage Life (yrs) A $410,000 $260,000 $25,000 35 B $375,000 $220,000 $20,000 30 C $520,000 $280,000 - infinite
Compare the following 2 alternatives using the incremental rate of return method. Determine which is the...
Compare the following 2 alternatives using the incremental rate of return method. Determine which is the most efficient and which is the most profitable. MARR=8% per year compounded yearly. (Compute the actual IRR values) Alter. Construction cost Annual Benefits Salvage Life (yrs) A $1,250,000 $300,000 $12,500 12 B $750,000 $270,000 $10,000 7
Three alternative pavement structures A, B and C are considered for a rural road. They have...
Three alternative pavement structures A, B and C are considered for a rural road. They have the following cost characteristics per lane-mile: Alter. DOT Construction cost $ Annual Maintenance cost $/yr Annual Benefits $/yr Life (yrs) A $250,000 $5,000 $320,000 9 B $400,000 $6,000 $300,000 18 C $700,000 $10,000 $380,000 25 Determine the most efficient and the most profitable alternative using the Incremental Benefit/Cost method. Given: • there is no salvage cost and • i=4% per year compounded yearly.
Compare the following two alternatives by the IRR method, given MARR of 6%/year. First find if...
Compare the following two alternatives by the IRR method, given MARR of 6%/year. First find if they are feasible and then compare them with the incremental rate of return (ROR). Alt. Construction cost $       Benefits $/yr Salvage $ Service Life (yrs) A 110,000 45,000 10,000 9 B 275,000 75,000 -10,000 9
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT