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wo alternatives are being considered: Initial Cost Uniform Annual Benefit Useful Life A $500 $140 8 B $800 $200 8 What is the Benefit Cost Ratio of the difference between the alternatives, based on 2% interest rate?

wo alternatives are being considered: Initial Cost Uniform Annual Benefit Useful Life A $500 $140 8 B $800 $200 8 What is the Benefit Cost Ratio of the difference between the alternatives, based on 2% interest rate?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 46P
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5. Use the provided chart to solve this problem. Show your work.

5. Two alternatives are being considered: Initial Cost Uniform Annual Benefit Useful Life A B $500 $800 $140 $200 8 8 What is the Benefit Cost Ratio of the difference between the alternatives, based on 12% interest rate?
Transcribed Image Text:5. Two alternatives are being considered: Initial Cost Uniform Annual Benefit Useful Life A B $500 $800 $140 $200 8 8 What is the Benefit Cost Ratio of the difference between the alternatives, based on 12% interest rate?
factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
Transcribed Image Text:factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
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