A public works project has an initial cost of P1 000 000, benefits with a present worth of P 1 500 000, and disbenefits worth of P 400 000. What is the benefit cost ratio? Answer:
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- Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 6% per year to determine which location to select, if any. Location North, N South, S Initial cost, $ 1.1 × 106 2.9 × 106 Annual cost, $ per year 480,000 390,000 Disbenefits, $ per year 70,000 40,000 Life, years ∞ ∞A manager wants to compare between two alternatives by the B/C method; if the overall B/C ratio for both alternatives is calculated to be exactly 1.0, which alternative should the manager select? Select one: a. do nothing alternative b. Select both alternatives c. Select the alternative that has the higher cost d. Select the alternative based on the probability to occurWhich statement is not true with respect to estimating the economic impacts of proposed engineering projects? (a) Order-of-magnitude estimates are used for high-level planning. (b) Order-of-magnitude estimates are the most accurate type at about –3 to 5%. (c) Increasing the accuracy of estimates requires added time and resources. (d) Estimators tend to underestimate the magnitude of costs and to overestimate benefits.
- 1.CEO of a state-owned airline receives results of initial cost estimates The new public access road to the airport costs a total of $ 4 million. And subsequent costs The new installment can be estimated at around $ 300,000. Benefits for 550,000 passengers Per year and 90,000 per year are defined as non-profit. 4% discount per annum and available Duration: 5 years. Calculate the B / C ratio analysis. Let be the difference between B-C. Plz do fast asap..A municipal landfill and incineration facility is planned. (a) Name at least three benefits, three disbenefits, and three costs. What stakeholder viewpoints will need to be considered? (b) Burning landfill materials produces environmental and health issues. List the primary issues in each case.build a modelAn industrial park is being planned for a tract of land near a river. To prevent flood damage to the industrial buildings that will be built on this low-lying land, an earthen embankment can be constructed. The height of the embankment will be determined by an economic analysis of the costs and benefits.The following data have been gathered (Tables 1 and 2). The embankment is expected to last 40 years and will require no maintenance.Whenever the flood water flows over the embarkment, a $310,000 in annual damages occur. The corporation uses an interest rate of 15% a) if they build the embarkment, what height should it have? Table 1 Table 2 Embankment Height Above Roadway (m) Initial Cost ($) Embankment Height Above Roadway (m) Avg Frequency That Flood Level Will Exceed heigh of embarkment 2.0 $ 100,000.00 2.0 Once in 3 years 2.5 $ 165,000.00 2.5 Once in 8 years 3.0 $ 300,000.00 3.0 Once in 25 years 3.5…
- A public-private partnership has been formed between a city, county, and construction/management company to attract a professional athletic team to the area. Assume you are the engineer with the company and are assisting with the benefit/cost analysis. The primary options are to construct a domed arena (DA) or a conventional stadium (CS), one of which will definitely be built. The DA option will cost $200 million to construct, have a useful life of 50 years, and require M&O costs of $360,000 the first year, increasing by $10,000 per year thereafter. In 25 years, a remodeling expenditure of $4,800,000 is predicted. The CS option will cost only $50 million to construct, have a useful life of 50 years, and require M&O costs of $175,000 the first year, increasing by $8000 per year. Periodic costs for repainting and resurfacing for the stadium are estimated at $100,000 every 10 years, except in year 50. Revenue from DA is expected to be greater than that from CS by $10,900,000 the…The following estimates (in $1000 units) have been developed for a security system upgrade at Chicago’s O’Hare Airport. (a) Calculate the conventional B/C ratio at a discount rate of 10% per year. Is the project justified? (b) Determine the minimum first cost that is possible to render the project just economically unjustified. Item Cash Flow First cost, $ 13,000 AW of benefits, $ per year 3,800 FW of disbenefits, year 20, $ 6,750 M&O costs, $ per year 400 Life, years 20Use the B/C method to compare four mutually exclusive alternatives for recycling plastic bottles. Make any additional calculations necessary to determine which alternative should be selected.
- Use AW method to calculate the benefit/cost ratio at i = 6% for a new library. The first cost is $500K, and O&M costs are $100K per year. There is no salvage value after 30 years. Community benefits are estimated to be $130K per year. Is the library economically justified? Write a brief interpretation of your answer. Determine the number of souvenir coins that must be sold per year to justify the purchase of a $6000 stamping machine. Each coin will be sold for $5.00 with a variable cost of $1.50. The machine will have little or no salvage value at the end of its 4-year useful life. Use an interest rate of 8%. What happens to the BEP if the variable cost increases to $2 per unit?When comparing different-life alternatives by the B/C method, the alternatives should be compared over:Q)1.The benefit-cost ratio of a project represents its time-valued benefit per unit investment (first cost) Select one: True False