A government-funded renewable energy electric power generation company has developed the following estimates (in $1000) for a new wind turbine farm. The MARR is 10% per year and the project life is 25 years. Calculate: (a) conventional B/C ratio, (b) modified B/C ratio. Benefits: $60,000 in year 0, $30,000 in year 5, Government savings: $2,000 in years 1 through 20, Cost. $40,000 in year 0, Disbenefits: $3000 in years 1 through 10.

A government-funded renewable energy electric power generation company has developed the following estimates (in $1000) for a new wind turbine farm. The MARR is 10% per year and the project life is 25 years. Calculate: (a) conventional B/C ratio, (b) modified B/C ratio. Benefits: $60,000 in year 0, $30,000 in year 5, Government savings: $2,000 in years 1 through 20, Cost. $40,000 in year 0, Disbenefits: $3000 in years 1 through 10.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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