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Compute the B-C ratio of this plan based on MARR of 10% per year and an infinite life for the project. How does the B-C ratio change for a 20-year project life?
For a $250,000 conventional home with a heating and cooling bill of $3,000 per year, how much have to be saved in energy expenses per year to justify this home?
How does this new challenger compare to the augmented defender and the original challenger?
If the after-tax MARR is 10% per year and the effective income tax rate is 40%, should the defender or the challenger be recommended?
Based on an after-tax analysis, should the new equipment be leased? Base your answer on the IRR of the incremental cash flow.
If they bid $2,000,000 for the job, what is the benefit-cost ratio in view of the following data? The MARR is 6% per year, and the project's life is 30 years.
Use the modified benefit-cost ratio method and a MARR of 10% per year to determine which alternative, if any, should be recommended to the city council.
If the state's capital is worth 10%, determine the B-C ratios and the incremental B-C ratio. Recommend which alternative should be adopted.
Which system has the greatest B-C ratio? Which system has the largest incremental B-C ratio (based on differences between alternatives)?
If the town's MARR is 10% per year, use the B-C ratio method to determine which system is best.
Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B-C ratio is at least 1.0.?
Annual benefits are identical for both projects, and terminal salvage values are negligible. Interest rate is 6% per year. Which proposal should be recommended?
If the city expects a modified benefit-cost ratio of 1.0 or better, which design would you recommend based on the data that follows?
The roads are assumed to have an economic life of 50 years, and MARR is 8% per year. Which route should be selected according to the B-C ratio method?
You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. Which system would you select?
Using a MARR of 8% and assuming a 25-year life for either alternative, apply the incremental B-C ratio method to determine which alternative should be chosen.
If the revenue generated by each customer is $3, how many customers per day will be required before the Orange Line can break even?
By what time would the additional two stories have to be built to make the adoption of the first design justified? MARR is 10% per year.
Suppose that the capital investment of Alternative 1 is known with certainty. Determine the life of Alternative 1 for which the AWs are equal.
Plot the AW of each alternative against MARR as the MARR varies across this range: 4%, 8%, 12%, 16%, and 20%.
What is the annual revenue required by your company from the contract to justify these expenditures before any profit is considered?
Using an annual-worth measure of merit, is the project economically attractive? To which of these factors is the decision most sensitive?
A large city in the mid-West needs to acquire street-cleaning machine to keep its roads. Find the breakeven percent reduction in labor hours for the new system.
Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee.
Analyze the sensitivity of PW to changes in each estimate individually. Based on your results, make a recommendation.