N12@ N345678910Single PaymentCompoundAmount PresentFactor Worth FactorTo Find FGiven PFIPDiscrete Compounding; i = 11%1.11001.23211.36761.51811.68511.87042.07622.30452.55802.8394To Find PGiven FPIF0.90090.81160.73120.65870.59350.53460.48170.43390.39090.3522CompoundAmountFactorTo Find FGiven AFIA1.00002.11003.34214.70976.22787.91299.783311.859414.164016.7220Uniform SeriesPresentWorth FactorTo Find PGiven APIA0.90091.71252.44373.10243.69594.23054.71225.14615.53705.8892SinkingFundFactorTo Find AGiven FAIF1.00000.47390.29920.21230.16060.12640.10220.08430.07060.0598CapitalRecoveryFactorTo Find AGiven PAIP1.11000.58390.40920.32230.27060.23640.21220.19430.18060.1698 The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 11% per year. What is the conventional B-C ratio for Truck X? The appropriate financial data are as follows:QClick the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year.Choose the correct answer below.Capital investmentMaintenance cost per yearUseful lifeReduction in fire damage per yearO A. The conventional B-C ratio for Truck X is 1.78.OB. The conventional B-C ratio for Truck X is 1.32.O C. The conventional B-C ratio for Truck X is 2.30.O D. The conventional B-C ratio for Truck X is 1.51.O E. The conventional B-C ratio for Truck X is 0.66.CTruck X$45,000$5,0007 years$22,000Truck Y$60,000$5,5005 years$24,000

Benefit/Cost Ratio (B/C R) is a financial metric used to assess the economic viability and…

Answered: he city council of Morristown is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Adams Construction Company is bidding on a project to install a large flood drainage culvert from Dandridge to a distant lake. If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project’s life is 30 years.
Identify the following as primarily private or public sector characteristics:a. Large investmentb. No profitsc. Funding from feesd. MARR-based selection criteriae. Low interest ratef. Short project life estimateg. Disbenefits
DPWH is considering building a new expressway going to Bicol to cut the travel time of consumers going south of Luzon. The expressway will be collecting toll from the users of the expressway. The B–C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be Php 1,000,000,000, and Php 17,000,000 per year in operating and maintenance costs are anticipated. Revenues generated from the toll are anticipated to be Php 125,000,000 in its first year of operation, with a projected annual rate of increase of 3% per year due to the anticipated annual increase in traffic. Using the problem above, assuming zero market (salvage) value for the expressway at the end of 30 years and a MARR of 10% per year, should the expressway be constructed? Solve using PW.
A sewage containment project in Louisiana is expected to require an initialinvestment of $3 million and annual maintenance expenses of $57,000. Thebenefits to the public are valued at $460,000 per year. This project can be assumed to have an infinite life. If MARR is 10% per year, determine whether the project is economically attractive using the B–C ratio measure of merit.
A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of benefits minus disdenefits is P560,000. What is the first cost of the project if the interest rate is 6% per year and the project is expected to have a 20-year life?
Alternative locations for an advanced wastewater recycling plant are being evaluated using four attributes identified as attributes 1, 2, 3, and 4 with weights of 0.4, 0.3, 0.2, and 0.1, respectively. If the value rating scale is from 1 to 10, and the ratings are 3, 7, 2, and 10 for attributes 1, 2, 3, and 4, respectively, the weighted attribute measure R is closest to: (a) 3.7 (b) 3.9 (c) 4.0 (d) 4.7
All of the following are primarily associated with public sector projects, except:a. profitsb. taxesc. disbenefitsd. infinite life
A firm has a capital budget of $30,000 and is considering three possible independent projects. Project A has a present outlay of $12,000 and yields $4,231 per annum for 5 years. Project B has a present outlay of $10,000 and yields $4,184 per annum for 5 years. Project C has a present outlay of $17,000 and yields $5,802 per annum for 10 years. Funds which are not allocated to one of the projects can be placed in a bank deposit. Identify seven combinations of project investments and a bank deposits which exhaust the budget. Which of the above combinations should the firm choose when the bank deposit rate is (i) 15% or (ii) 20%? Explain your answer and show your work. Suppose there is no option to deposit in the bank, but the projects are "divisible" (e.g. you may have 25% of project A). Which combination should the firm choose? Explain your answer and show your work. Use 15% as the deposit rate (discount rate).
The owner of a downtown parking lot has employed a civil engineering consultingfirm to advise her on the economic feasibility of constructing an office building onthe site. The project engineer has assembled the following data: The analysis period is to be 15 years. At the end of that time the salvage value is expected to be equal to the initial investment.MARR is 10%. What should the engineer recommend?
There are five independent projects that must be evaluated on the basis of the profitability index. (a) Given an investment limit of $35 million and a MARR of 10% per year, select from the projects. (b) Write the spreadsheet function for a project, specifically for project 5, which will correctly display the PI value used to rank the project. First Cost, NCF, Life, Project $1000 $1000/Year Years 1 −4,000 900 7 2 −7,000 1,900 10 3 −17,000 2,900 15 4 −15,000 3,600 10 5 −30,000 5,000 8
An engineer is considering the projects below, all of which can be last indefinitely. If the company’s MARR is 14% per year, determine which two options should be selected using B/C ratio analysis
The American Pharmaceutical Company (APC) has a policy that all capital investments must have a five-year or less discounted payback period in order to be considered for funding. The MARR at APC is 9% per year. Is the above project able to meet this benchmark for funding? What is the payback period?

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