The B/C ratio of an investment of $10,000 that provides a benefit of $1,500 at the beginning every year for 10 years is if money is worth 9%. 2.50 O 1.38 O 1.79 1.05
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![The B/C ratio of an investment of $10,000 that provides a benefit of $1,500 at the beginning every
year for 10 years is
if money is worth 9%.
2.50
O 1.38
O 1.79
1.05](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24414dd3-7902-42ed-99e8-12d5d637f944%2F85b71855-928e-4785-99ac-6e7e5691b876%2Fn7fc2c6_processed.png&w=3840&q=75)
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- A library shelving system has a first cost of $20,000 and a useful life of 10 years. The annual maintenance is expected to be $2,500. The annual benefits to the library staff are expected to be $9,000. If the effective annual interest rate is 10%, what is the benefit-cost ratio of the shelving system? a. 1.51 b. 2.24 c. 1.73 d. 1.56.IC OM B D Life/years X Z Y X $320,000 $45,000 $110,000 $20,000 10 W Y $540,000 $35,000 $150,000 $45,000 20 Based on the above ME alternatives and using the B/C analysis, which alternative we should select?i=10%. Z $300,000 $50,000 $80,000 $10,000 10 W $330,000 $20,000 $95,000 $30,000 20 V $250,000 $40,000 $90,000 $10,000 154. Using the incremental B / C analysis (∆B/C). Determine the best alternative.5. Using the incremental rate of return (∆RoR) analysis. Determine the best alternative. MARR =10%. A B C DFirst cost 45,000 $25,000 $35,000 $15,000O &M Cost/year $4,000 $1,500 $3,000 $2,000Benefit/year $15,000 $9,500 $14,000 $8,000Salvage value $9,000 $5,000 $7,000 $3,000Life in years 10
- A government project has the following estimates: Annual Benefits P500,000 Annual Disbenefits P450,000 Annual Costs P350,000 Annual Savings P340,000 Mistakenly treating disbenefits as costs and savings as benefits, determine the B/C ratio. O 5 O 1.05 O 3.95 O 2.55With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $201,767 Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 10 Enter your answer as follow: 12.34 $28,755/year $0/year $108,308/year7 A flood control project with a life of 16 years will require an investment of $55,000 and annual maintenance costs of $6,000. The project will provide no benefits for the first two years but will save $26,000 per year in flood damage starting in the third year. The appropriate MARR is 12% per year. What is the modified B-C ratio for the flood control project?
- A major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10% a. Using Benefit- Cost analysis, what is the Benefit/Cost ratio for this equipment purchase? b. Based on the Benefit/Cost analysis should Metro Atlanta purchase the equipment?5. Assume EUAB -SI8,733 ( ia notf). The BenefitCost ratio is closest to a) 1.49 b) 1.45 c) 1.58 d) 1.73 c) 2.19 0241 ) 2.07The following data is provided for a PPP project. Benefits Disbenefits To the People $150,000 per year beginning now $30,000 per year S7.4.b - Benefit/Cost Analysis of a Single Project The modified B/C ratio is Cost Savings Calculate the modified benefit/cost ratios using an interest rate of 7% per year and an infinite project period. To the Government $1.8 million now and $200,000 every 3 years $80,000 per year
- Question 18 Refer to the Exhibit 2. At the equilibrium price, producer surplus is 2 Exhibits 1-7.pdf < 1 Exhibit 2 Price 85 82KRSRRVARERSOS 80 75 70 65 60 55 27.5 50 45 40 10 5 - Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Quantity +When using the benefit cost ratio (B/C) measure of worth, what benchmark is the calculated ratio compared to in determining if an individual investment is attractive? a. 0.0 b. MARR c. 1.0 d. IRR.If the local government invests in a project which has a 20 years useful life and initial investment of 2.25 million dollars and the yearly benefit is $250,000, with a maintenance cost (starting in year 1), what is Benefit Cost Ratio (rounded to the whole percentage, no decimals)? none of the given choices 80%, B. С 75%, D. 60%,
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