Question

Five mutually-exclusive projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public agency. The following tabulation shows the equivalent annual benefits and costs for each: Project Annual Benefits Annual Costs A $1,800,000 $2,000,000 B $5,600,000 $4.200,000 C $8,400,000 $6,800,000 D $2,600,000 $2,800,000 E $6,600,000 $5,400,000 Assume that the projects are of the type for which the benefits can be determined with considerable certainty and that the agency is willing to invest money in any project as long as the B-C ratio is at least one. Determine the annual worth (AW) of the best project that the public agency will select. The agency’s MARR is 10 % per year and the project lifetimes are each 15 years.

Answer #1

Benefit cost analysis of each project is calculated in excel and screen shot provided below:

agency is willing to invest money in any project as long as the B-C ratio is at least one. So project A and Project D cannot be accepted, because B-C ratio of both project si less than 1.

Project B, Project C and project E can be accepted, because B-C ratio of these three proejct is more than 1.

Five mutually-exclusive projects consisting of reinforcing dams,
levees, and embankments are available for funding by a certain
public agency. The following tabulation shows the equivalent annual
benefits and costs for each:
Project Annual
Benefits Annual
Costs
A $1,800,000 $2,000,000
B $5,600,000 $4.200,000
C $8,400,000 $6,800,000
D $2,600,000 $2,800,000
E $6,600,000 $5,400,000
Assume that the projects are of the type for which the benefits
can be determined with considerable certainty and that the agency
is willing to invest money in any project as long as the B-C ratio
is at least one. Determine...

Five mutually-exclusive projects consisting of reinforcing dams,
levees, and embankments are available for funding by a certain
public agency. The following tabulation shows the equivalent annual
benefits and costs for each:
Project Annual
Benefits Annual
Costs
A $1,800,000 $2,000,000
B $5,600,000 $4.200,000
C $8,400,000 $6,800,000
D $2,600,000 $2,800,000
E $6,600,000 $5,400,000
Assume that the projects are of the type for which the benefits
can be determined with considerable certainty and that the agency
is willing to invest money in any project as long as the B-C ratio
is at least one. Determine...

Five independent and mutually exclusive projects are available
for funding by certain public agency.
The following tabulation shows the equivalent annual benefits
and cost of each. All AW has been calculated. (10ptos)
Project
Annual Benefits
Annual Cost
A
$1,800,000
$2,000,000
B
5,600,000
4,200,000
C
8,400,000
6,800,000
D
2,600,000
2,800,000
E
6.600.000
5,400,000
Which plan should be adopted using incremental
analysis for of Mutually Exclusive Projects. **
FAVOR DE CALCULAR CONVENTONAL BENEFIT RATIO A TODOS Y ELIMINAR LOS
MENORES B/C DE (1)...

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