Question

Civil Engineering Economics Question...

Exercises 79 alternatives have been proposed for improving the water supply for a city, but ted. Each option has a lifetime of 8 yr and the MARR set is Six different anly one option can be implemen % All figures are m millions of dollars which alternative should be selected? Caiphal cost Amnuial cost Annual benefit T U 10 5 1 2.5 14 1.4 3 2.3 5 2.5 27 4 17 (a) Solve by present worth analysis (b) Solve by annual cash flow analysis (c) Solve by incremental B/C ratio analysis (d) Solve by incremental rate of return analysis

Answer 1

FYİst Wl need to draw 가1 Cashflow diagno highest present Worth value will be 쏘elected. The Cot which İç -Given by ustufu be drawn in down -Word dt echonin cash plohjaiagram be dan in up ward itection for altetnativep 2- 6 →:-cash Flow diagram Fi Annual beneft Ml cullavs

Present orth 3 1 2 Ito (10) I+ 0.0%) PWp = ヌ4.706 millon donors 4-

Capital cost 4 Miion dotars h u Annual 2-芴 ヌ-5 2-32-8万 -t PAQ- 一0,169 Mfufon dollars 14 14-1y1

capital Cost zl M!!!; on dolla to.os)6 R=36.666 min, o n dollars 4

05)6 1+0,05) (H0.06) For alte어 native T:- 3 3 3-3 Capital ost dolars オnnual Cot t B Million Clot tax Arnual Bene征t= 5 Na ition dotars

CHo.05) t005) PAT 2.926 NA, fon dollars For atternative 232.33 -2.3 2332 2.3 capitai {ost = n rnillion dollars Annual Benepi 2. lo dotlar

2 S put)--3-108 Million dollavı ince preseot xtho a highest all the 6 altetnatives, hence alteinative s should ba Selected fo im poving the later Sufip aiiy