Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Question
Chapter 10, Problem 14P
(a):
To determine
Calculate the benefit cost ratio.
(b):
To determine
Calculate the change in benefit cost ratio.
(c):
To determine
Best alternative.
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Students have asked these similar questions
Why are benefit cost ratios inappropriate for evaluating alternative projects?
Cost-effectiveness analysis (CEA) differs from benefit/cost analysis (B/C) in that: (a) CEA cannot handle multiple alternatives (b) CEA compares alternatives on the basis of a specific outcome rather than solely on monetary units (c) CEA cannot handle independent alternatives (d) CEA is more time consuming and resource intensive
Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a higher total cost than X. If the B/C ratios are 1.2 and 1.0 for alternatives X and Y, respectively, which alternative should be selected? Why
Chapter 10 Solutions
Engineering Economy
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