Davao International Airport has crafted estimates for the upgradıng of security systems. Will the upgrade be accepted? Determine the B/C ratio at an interest rate of 10% per year using the conventional Annual Worth method of the following: a. Benefits are reduced by disbenefits b. Costs are increased by disbenefits Cashflow Amount $13,000,000 $3,800,000 $6,750,000 $400,000 First costs Annual worth of benefits Future Worth of disbenefits Annual operating and Maintenance costs Life 20 years

Davao International Airport has crafted estimates for the upgradıng of security systems. Will the upgrade be accepted? Determine the B/C ratio at an interest rate of 10% per year using the conventional Annual Worth method of the following: a. Benefits are reduced by disbenefits b. Costs are increased by disbenefits Cashflow Amount $13,000,000 $3,800,000 $6,750,000 $400,000 First costs Annual worth of benefits Future Worth of disbenefits Annual operating and Maintenance costs Life 20 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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