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.
Q3:1) For equal 20 years life at the interest rate of 6 %, which Design should be selected by using Benefit Cost Method...
Problem 07.025 - Comparison of conventional and solar alternatives based on B/C analysis Conventional and solar alternatives are available for providing energy at a remote radar site. Use the incremental B/C ratio to determine which method should be selected at an interest rate of 8% per year and a 5-year study period. Method Conventional Solar Initial cost, $ 230,000 2,700,000 Annual cost, $ per year 575,000 11,000 The B/C ratio is Select conventional method.
QUESTION 8 Solar and converfonalaternatives are available for providing energy at a remote space research ste. The costs associated with each alternative are shown below. Use the B/C method to determine which should be selected at a discount rate of 0.75% per month (12 months) over a 6-year study period. hint: convert costs to monthly Initial cost, MROCOL S/month Salvage values Conventional 2.000.000 50.000 0 Solar 4,500,000 10.000 150,000 • Boost Abenefits A conventional 8.1.23 C 43196 D.Solar E. 2500000...
Question 13 15 points Save An The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabl. Determine which one should be selected based on a B/c analysis. Assume an interest rate of 10% per year and a 5-year study period. Altereative X Alternative Y 90,000 40,000 First costs, AED 50,000 20,000 Annual M&0 costs, AED per year 150,000 Benefits, AED per year Disbenefits, AED per year 10,000 Match the closest comect answers for...
Question 1 A. Using Ms Excel, find out which alternative should be selected on the basis of the Present Worth method, if the rate of interest is 8% per year. • Alternative 1: Initial purchase price = $2500000, Annual operating cost $45000 at the end of 1st year and increasing by $3000 in the subsequent years till the end of useful life, Annual income = $120000, Salvage value = $550000, Useful life = 3 years. Alternative 2: Initial purchase price...
The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on a B/C analysis. Assume an interest rate of 10% per year and a 5-year study period. Alternative X Alternative Y First costs, AED 40,000 90,000 Annual M&O costs, AED per year 50,000 20,000 Benefits, AED per year 120,000 150,000 Disbenefits, AED per year 30,000 10,000 Match the closest correct answers for the below questions: - ...
Question 9: Giving the below data, which machine should be selected using i-5% per year A) Using Presnet Worth Analsys B) Using Annual Worth Analsys Machine X First Cost $20,000 operating cost $9,000 per year $5,000 Salvage value Years $35,000 $4,000 per year $7,000 Lombing of money Different nterest Question 6: An industrial engineer made a modification to a chip manufacturing process that will save her company $10,000 per year. At an interest rate of 8% per year, how much...
USE THE FOLLOWING INFORMATION FOR # 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 3% 4% 120,000 $ e beginning of 2017 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ $ 350,000 40,000 $ $ 3.500 (45,000) Projected benefit obligation at the...
Question 13 15 points Save Answer The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on a B/C analysis. Assume an interest rate of 10% per year and a 5 year study period Alternative X Alternative Y 90,000 First costs, AED 40.000 50,000 20,000 Annual M&O costs, AED per year Benefits, AED per year 120,000 150,000 Disbenefits, AED per year 30,000 10,000 Match the closest...
Question 13 15 points Save Answer The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on a B/C analysis. Assume an interest rate of 10% per year and a 5-year study period. Alternative X Alternative Y First costs, AED 40,000 90,000 20,000 Annual M&O costs, AED per year 50,000 150,000 Benefits, AED per year 120,000 Disbenefits, AED per year 30,000 10,000 Match the closest correct...
Question 13 15 points Save Answer The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on a B/C analysis. Assume an interest rate of 10% per year and a 5 year study period Alternative X Alternative Y 90,000 First costs, AED 40.000 50,000 20,000 Annual M&O costs, AED per year Benefits, AED per year 120,000 150,000 Disbenefits, AED per year 30,000 10,000 Match the closest...