Question

Question 18 7 pts At 10% interest, what is the conventional benefit/cost ratio for the following government project using PW? Initial cost-$200,000 Additional costs at end of Years 1 and 2 $30,000 Benefits at end of Years 1 and 2 $0 Annual benefits of end of Years 3 to 10 $90,000

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Equivalent worth of Benefits- Equivalent worth of Disbenefits Equivalent worth of total cost - Equivalent worth of salvagevalue Convention al B/C ratio

=(90000*(1/1.1^3+1/1.1^4+1/1.1^5+1/1.1^6+1/1.1^7+1/1.1^8+1/1.1^9+1/1.1^10))/(200000+30000/1.1+30000/1.1^2)
=1.574240517

Add a comment
Know the answer?
Add Answer to:
Question 18 7 pts At 10% interest, what is the conventional benefit/cost ratio for the following...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • uestion6 0.25 pts with interest at 10%, what is the benefit-cost ratio for this government project?...

    uestion6 0.25 pts with interest at 10%, what is the benefit-cost ratio for this government project? nitial Cost Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year so/year 2 Annual benefits at end of year 3 $101015/year through year 10 $203180 $29800/year Enter your answer as follow: 12.34

  • With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $244,793...

    With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $244,793 Additional costs at the end of year 1 and year 2 $22,478/year Benefits at end of year 1 and year 2 $0/year Annual benefits at end of year 3 through year 10 $96,236/year Enter your answer as follow: 12.34

  • With interest at 10%, what is the benefit-cost ratio for this government project? $208,355 Initial Cost...

    With interest at 10%, what is the benefit-cost ratio for this government project? $208,355 Initial Cost Additional costs at the end of year 1 and year $23,720/year Benefits at end of year 1 and year 2 $0/year Annual benefits at end of year 3 through year. $91,825/year 10 Enter your answer as follow: 12.34

  • Problem 09.010 Benefit/Cost Analysis of a Single Project The estimated annual cash flows for a proposed...

    Problem 09.010 Benefit/Cost Analysis of a Single Project The estimated annual cash flows for a proposed municipal government project are costs of $710,000 per year, benefits of $910,000 per year, and disbenefits of $160,000 per year. Calculate the conventional B/C ratio at an interest rate of 12% per year, and determine if it is economically justified. The B/C ratio is The project is economically (Click to select) A

  • Problem 09.010 Benefit/Cost Analysis of a Single Project The estimated annual cash flows for a proposed...

    Problem 09.010 Benefit/Cost Analysis of a Single Project The estimated annual cash flows for a proposed municipal government project are costs of $800,000 per year, benefits of $910,000 per year, and disbenefits of $230,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if It is economically justified. The B/C ratio is The project is economically not justified

  • 1. [30] A government agency has you to compute benefit cost ratios for the following bridge...

    1. [30] A government agency has you to compute benefit cost ratios for the following bridge project Cost: $3,250,000 Salvage: $200,000 Benefits: $800,000 per year O&M Costs: $350,000 per year Interest: 10% Project Life: 100 years

  • Q3:1) For equal 20 years life at the interest rate of 6 %, which Design should be selected by using Benefit Cost Method...

    Q3:1) For equal 20 years life at the interest rate of 6 %, which Design should be selected by using Benefit Cost Method (include DN alternative) (13 Marks) Design 1 Design 2 Construction cost, $ 15,000,000 10,000,0o0 Building maintenance cost, S/year Patient benefits, S/year 55,000 35,000 1,050.0ooo 800,0oo Conventional and solar the B/C ratio to determine which ii) alternatives are available for providing energy at a remote radar site. Use method should be selected at an interest rate of 12%...

  • 10. Use AW Benefit/Cost Ratio to select preferred Design of the following table. MARR= 9% (10...

    10. Use AW Benefit/Cost Ratio to select preferred Design of the following table. MARR= 9% (10 ptos) Design#1 Design#2 Design#3 Capital Investment Salvage Value Annual O&M costs Annual Benefits Useful life $1,240,000 90,000 215,000 462,800 $1,763,000 150,000 204,000 522,000 $1,475,000 120,000 201,000 485,500 15 yrs. 15 yr 15 yr

  • Name 4) Fill in the following table to caloulate the net present vallue and benefit/cost ratio...

    Name 4) Fill in the following table to caloulate the net present vallue and benefit/cost ratio of each investment. Round to the nearest dollar or hundredth in the benefit/cost ratio. Investment B Investment A Yearly After-tax Yearly Present After-tax Present After-tax After-tax Present Value Year Value Present Value Year Value x of Benefits of Benefits Benefit Benefit Factor Factor 3200 1850 2 1925 2 3200 2567 3200 3 4 3850 3000 3000 3850 Total 6 5133 Less Initial Cost 7...

  • Find the benefit-cost ratio and profitability index for group’s company startup at an interest rate of...

    Find the benefit-cost ratio and profitability index for group’s company startup at an interest rate of 10% Initial Investment for Company Startup:    $2,000,000   Anticipated Annual Costs:           Annual Operating and Maintenance Costs   $20,000 Annual Material Costs           $50,000 Annual Personnel Costs           $80,000 Anticipated Revenue:           Year 1:   $590,000           Year 2:   $570,000           Year 3:   $520,000           Year 4:   $150,000           Year 5:   $580,000           Year 6:   $930,000      ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT