Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 10, Problem 29FE
A flood control project with a life of 16 years will require an investment of $60,000 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the third year. The appropriate MARR is 12% per year. Use this information to answer problems 10-29 and 10-30. Select the closest answer.
10-29. What is the conventional B–C ratio for the flood control project?
- (a) 1.53
- (b) 1.33
- (c) 1.76
- (d) 2.20
- (e) 4.80
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Students have asked these similar questions
The estimated negative cash flows for three design alternatives are shown below. The MARR is 13%
per year and the study period is four years. Which alternative is best based on the IRR method?
Doing nothing is not an option.
Capital
investment
Annual expenses
EOY
0
A. Alternative B
B. Alternative A
C. Alternative C
1-4
A
$82,400
6,200
Alternative
B
$64,500
12,100
с
$71,900
9,550
Which alternative would you choose as a base one? Choose the correct answer below.
The estimated negative cash flows for three design alternatives are shown below. The MARR is 14% per year and the
study period is five years. Which alternative is best based on the IRR method? Doing nothing is not an option.
Capital
investment
Annual expenses
EOY
0
A. Alternative C
B. Alternative B
OC. Alternative A
1-5
CLEAN
A
$81,500
7,500
Alternative
B
$64,400
12,620
Which alternative would you choose as a base one? Choose the correct answer below.
Analyze the difference between the base alternative and the second-choice alternative.
C
$71,000
10,420
Alternative 3 is incorrect
EUAC=( Equivalent Annaul COst of Initial Investment)+ (Expected Moderate annaual flood damage cost )+ (expected severe annaual flood cost )
Chapter 10 Solutions
Engineering Economy
Ch. 10 - The Adams Construction Company is bidding on a...Ch. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - A retrofitted space-heating system is being...Ch. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10P
Ch. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Four mutually exclusive projects are being...Ch. 10 - Two municipal cell tower designs are being...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - You have been requested to recommend one of the...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26FECh. 10 - Prob. 27FECh. 10 - Prob. 28FECh. 10 - A flood control project with a life of 16 years...Ch. 10 - Prob. 30FECh. 10 - Prob. 31FE
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