Incremental Analysis D& B |
|||
D |
B |
incremental cost/benefit |
|
cost |
1000 |
2000 |
1000 |
benefits |
2340 |
47000 |
44660 |
incremental cost benefit ratio = incremental benefit/incremental cost = 44660/1000 |
44.66 |
||
Project D would be eliminated |
|||
Incremental analysis B & A |
|||
B |
A |
incremental cost/benefit |
|
cost |
2000 |
4000 |
2000 |
benefits |
47000 |
7330 |
-39670 |
incremental cost benefit ratio = incremental benefit/incremental cost = -39670/2000 |
-19.835 |
||
Project A is eliminated |
|||
Incremental analysis B & C |
|||
B |
A |
incremental cost/benefit |
|
cost |
2000 |
6000 |
4000 |
benefits |
47000 |
8730 |
-38270 |
incremental cost benefit ratio = incremental benefit/incremental cost = -38270/4000 |
-9.5675 |
||
Project C would be eliminated |
|||
Incremental analysis B & E |
|||
B |
A |
incremental cost/benefit |
|
cost |
2000 |
9000 |
7000 |
benefits |
47000 |
9000 |
-38000 |
incremental cost benefit ratio = incremental benefit/incremental cost = -38000/7000 |
-5.4285714 |
||
Project E would be eliminated |
|||
Incremental analysis B & F |
|||
B |
A |
incremental cost/benefit |
|
cost |
2000 |
10000 |
8000 |
benefits |
47000 |
9500 |
-37500 |
incremental cost benefit ratio = incremental benefit/incremental cost = -37500/8000 |
-4.6875 |
||
Project F would be eliminated |
|||
So on the basis of cost benefit analysis Project B would be selected |
16. Use incremental analysis to select the best alternatives using Benefit- Cost ration 4000 2000 60001000...
Use incremental analysis to select the best alternatives using Benefit – Cost ration 16. Use incremental analysis to select the best alternatives using Benefit - Cost ration Cost 4000 2000 7330 47000 8730 1000 1340 9000 9000 10000 9500 6000 Pw(benefits) Useful life is 20years Interest 6%
16. Use incremental analysis to select the best alternatives using Benefit - Cost ration Cost Pw(benefits) 4000 2000 6000 1000 9000 10000 7330 47000 8730 1340 9000 9600 Useful life is 20years Interest 6%
16. Use incremental analysis to select the best alternatives using Benefit-Cost ration 4000 2000 6000 7330 470008730 GO0D 1000 9000 10000 Cost Pw(benefits) 90009500 Useful life is 20years Interest 6%
16. Use incremental analysis to select the best alternatives using Benefit-Cost ration 4000 2000 6000 7330 470008730 GO0D 1000 9000 10000 Cost Pw(benefits) 90009500 Useful life is 20years Interest 6%
3. Assuming a MARR of 20%, use incremental analysis (defender vs challenger approach) to select the best choice among the four alternatives: A Initial cost 2500 4800 4200 3600 Annual benefit 850 700 850 1300 Salvage value 2500 1750 1250 3000 Useful life (yrs) 5 4. Use IRR and incremental analysis, assuming a MARR of 20%, to solve problem 83. 5. Use Benefit to Cost (B/C) ratio and incremental analysis to solve problem #3.
brief explanation Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10% Alternative A Initial cost $50,000 Annual maintenance cost $4,000 Estimated annual benefit $10,000 Alternative B Initial cost $30,000 Annual maintenance cost $3,000 Estimated annual benefit $9,000 a. Select A with B/C =1.14 b. Select B with B/C = 1.14 c. Reject A with B/C = 1.14 d. Select B with B/C = 0.14
Using the incremental B-C analysis, B-C ratio with PW and a MARR of 10%, choose the best alternative from the following three mutually exclusive alternatives given below. State your assumptions. Option B Option C Option A $30000 $50000 $70000 5 10 15 Initial investment Life in years Salvage value Annual benefits 0 0 $2000 $8000 $8000 $8000
international genetic technologies inc. (InGen) is examining the following three mutually exclusive alternatives. 3) Using benefit-cost ratio analysis, a 10-year useful life and a MARR of 25%, determine which of the following mutually exclusive models should be selected. А в C D E Initial Cost $100 $200 $300 $400 $500 $37 $60 $83 $137 $150 Annual Benefits 4) A big box company is using a benefit-cost ratio analysis to select which one of the 3 alternatives shown below should be...
Q1: How to use incremental rate of return analysis given two alternatives and choosing which one is the best? Q2: Case 1: Alternative 1 Alternative 2 Cost 500 700 Annual Cost . 600 800 Annual Benefit 700 . 900 Case 1: Alternative 1 Alternative 2 Cost 700 500 Annual Cost . 800 600 Annual Benefit 900 700 Based on these two cases, how to I apply incremental return analysis to this, and instead of using incremental rate of return...
3. Use a spreadsheet for evaluation of the multiple alternatives provided below. Use incremental B/C analysis. These alternatives are relative to the application of nanotechnology and the use of thin-film solar panels applied to houses to reduce the dependency on fossil-fuel generated electrical energy. A community of 400 new all- electric public housing units will utilize the technology as anticipated proof that significant reductions in overall utility costs can be attained over the expected 15-year life of the housing. The...