Question

Q3:1) For equal 20 years life at the interest rate of 6 %, which Design should be selected by using Benefit Cost Method (inclConventional and solar the B/C ratio to determine which ii) alternatives are available for providing energy at a remote radar

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% per year and a 6-year period. Conventional Solar Initial cost, $ 300,000 2,500,000 700.000 Annual cost, $ per year 5,000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

In Part 3(i) Design 1 has better benfit to cost ration compared to Design 2.

In part (ii) Solar is economically better compared to conventional

P.S For interest calculation formulae used is Interest amount per year = principal* Interest rate.

Design 1 Construction BMC Capital and Intres Patient at the end of 20 years Benfits 35,0008,00,000 112249.74158,00,000 105895Design 2 Construction BMC Capital and Intres Patient at the end of 20 years Benfits 55,00010,50,000 176392.451 10,50,000 1664Conventional Solar Initial Cost 3,00,00025,00,000 Maintenance Cost 7,00,000 5,000 Conventional Solar Initial Cost5,92,146.81

Add a comment
Know the answer?
Add Answer to:
Q3:1) For equal 20 years life at the interest rate of 6 %, which Design should be selected by using Benefit Cost Method...
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
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
ADVERTISEMENT