Present worth of benefit=101015((1/1.1)^3+(1/1.1)^4+...+(1/1.1)^10)=101015*4.76=480783.3
Present worth of Cost=203180+29800((1/1.1)^1+(1/1.1)^2))=203180+29800*(1.74)=254899
Benefit-Cost Ratio=PW of Benefit/ PW of Cost=480783.3/254899=1.886=1.89
Benefit Cost Ratio =1.89
uestion6 0.25 pts with interest at 10%, what is the benefit-cost ratio for this government project?...
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 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
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
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 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
A project has a first cost of $113,164, will produce a $65,390 net annual benefit, and has annual maintenance costs of $25,793 over its 25-year life. It has a salvage value of $36,264 at the end of its life. Using a MARR of 2%, what is the benefit-cost ratio of the project? Enter your answer as: 1.23 (Calculate to 2 decimal places only.)
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
Problem 2: Cost-benefit Analysis. A project costs 10 this ycar, has a benefit of 5 this ycar, and has a bencfit of 6 next ycar. (a) Assuming that the interest rate is r , what is the present value (sum of the dis- counted benefits minus costs) of the project? (b) For what value of interest rate r, the present value of the project will be exactly equal to zero?
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 ...
A cost-benefit analysis of an irrigation project shows that the ratio of the discounted present value of benefits to costs is less than one. This implies that: a. the net benefit of the project is positive. b. the net benefit of the project is negative efficiency can be attained by undertaking the project. d. the project will redistribute income to the poor. QUESTION 6 A lower discount rate favors more capital-intensive investments that yield net benefits further into the future....