1. Calculate the conventional b/c ratios for alternate a. is alternate aeconomically justified?
2. Calculate the modified b/c ratio for alternate a. is alternate a economically justified?
4. perform a life cycle cost analysis on alternate a.
5. Perfrom a life cycles savings analysis on alternate a.
6. Perform a break-even quantity analysis to calculate thenumber of projects that must be undertaken each year to justify
Alternative a. The laborfor alternate ais $14.00 per hour alternate a can produce 1 project/10 hr.
proposal initial cost
Alternate a $35,000
alternate b$70,000
Ce 3360/3361 -3-
Project ii -fall2013name:_______________
Alternate a
Interest on 10.38%/year
cost
Interest on +1.5%
revenue
Aw initial -$11.1k/yr
cost
Aw technical-$0.7k/yr
Support
Aw upgrades -$0.71k/yr
Aw revenue +$4.9k/yr
Aw salvage +$.86k
Pw salvage +$3.2k
Life 4 years
By signing this page, i stipulate that i have not given nor received any help in completing this project______________________________
project ii: due 3december 2014
