Question

Conduct a Benefits-Cost Analysis on the following Highway Project using: Initial Costs of Tunnel $5,000,000 Annual...

Conduct a Benefits-Cost Analysis on the following Highway Project using:
Initial Costs of Tunnel $5,000,000

Annual costs for operating/maintenance 150,000

Annual savings and benefits to travelers 250,000

Residual value of benefits after horizon 350,000

Useful life of investment 30 years

Interest Rate 6%

a. B-C Ratio of Annual Worth

b. B-C Ratio of Future Worth

c. B-C Ratio of Present Worth

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a highway project with the following costs and benefits. This representation of costs and benefits...
Consider a highway project with the following costs and benefits. This representation of costs and benefits assumes the costs occur immediately and the benefits occur at the end of year 1, end of year 2 and the end of year 3. Year 0 1 2 3 Costs $470,000 Benefits $275,000 $295,000 $315,000 (a) Calculate the net present value of the project. Assume a discount rate of 4%. (b) Now suppose all the benefits occur at the start of each period....
Consider the following financial data: Project A Project B Initial Cost $11531 $18817 Annual Benefit $1490...
Consider the following financial data: Project A Project B Initial Cost $11531 $18817 Annual Benefit $1490 $4888 Annual Maintenance Costs $629 $1703 Project Life 10 years 15 years Using a MARR of 8%, what is the benefit-cost (B/C) ratio for project A?
Consider the following financial data: Project A Project B Initial Cost $5422 $15179 Annual Benefit $2331...
Consider the following financial data: Project A Project B Initial Cost $5422 $15179 Annual Benefit $2331 $5694 Annual Maintenance Costs $1092 $2372 Project Life 10 years 15 years Using a MARR of 8%, what is the incremental benefit-cost (B/C) ratio for projects A and B?
Consider a heat pump purchase with the following details: * Initial cost: 20,000 USD * Annual...
Consider a heat pump purchase with the following details: * Initial cost: 20,000 USD * Annual savings: 3,000 USD for 20 years * Annual maintenance costs: 250 USD for 20 years * Estimated salvage value: 500 USD at the end of 20 years (a) If the interest rate is 10%, what is the net present worth of this heat pump? (b) Calculate the simple payback period of the heat pump. (c) Calculate the Benefit/Cost ratio of the heat pump purchase....
Consider a heat pump purchase with the following details: * Initial cost: 15,000 USD * Annual...
Consider a heat pump purchase with the following details: * Initial cost: 15,000 USD * Annual savings: 2,500 USD for 25 years * Annual maintenance costs: 150 USD for 25 years * Estimated salvage value: 300 USD at the end of 25 years (a) If the interest rate is 12%, what is the net present worth of this heat pump? (b) Calculate the simple payback period of the heat pump. (c) Calculate the Benefit/Cost ratio of the heat pump purchase....
Consider a heat pump purchase with the following details: * Initial cost: 20,000 USD * Annual...
Consider a heat pump purchase with the following details: * Initial cost: 20,000 USD * Annual savings: 3,000 USD for 20 years * Annual maintenance costs: 250 USD for 20 years * Estimated salvage value: 500 USD at the end of 20 years (a) If the interest rate is 10%, what is the net present worth of this heat pump? (b) Calculate the simple payback period of the heat pump. (c) Calculate the Benefit/Cost ratio of the heat pump purchase....
A project for erection a park with the following expected cost and benefits : -First cost...
A project for erection a park with the following expected cost and benefits : -First cost of 5250000 L.E -Annual operating cost of 1800000 L.E for the first year ; then it increased by 300000 L.E per year up to year 5 , and after that it remain constant at 3000000 L.E /year . -The expected costs for improving the park will be 90000 L.E / year for the first five years . -The expected profits will be 1650000 L.E...
Preform a benefit/cost analysis on the following project: Expected costs: $5,000 today, $5,000 a year from...
Preform a benefit/cost analysis on the following project: Expected costs: $5,000 today, $5,000 a year from today, and $5,000 two years from today Expected revenue: $6,000 five years from today, $7,000 seven years from today, and $8,000 ten years from today. Assume a 6% discount rate The Net Present Value (NPV) of the project The benefit/cost ratio Is the project worth undertaking?
A public project with social discount rate of 6% has determined that its initial costs will...
A public project with social discount rate of 6% has determined that its initial costs will be spread out over the first 2 years of construction. They will be $10,000,000 in year 0, $15,000,000 in year 1, and $5,000,000 in year 2. Beginning in year 3 and continuing until year 22, the project will have an annual operating expense of $1,000,000. In addition, the city government sponsoring the project will receive $100,000 per year in revenue because of the project....
A flood control project with a life of 18 years will require an investment of $200,000...
A flood control project with a life of 18 years will require an investment of $200,000 and annual maintenance costs of $15,000. The project will provide no benefits for the first two years but will save $80,000 per year in flood damage starting in the third year. The appropriate MARR is 18% per year. What is the conventional B-C ratio with present worth for the flood control project. (Enter your answer rounded to two decimal places; i.e., x.xx)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT