Given a single alternative for a proposed government project, if the alternative's benefit-cost ratio is 1.4, then the project Should be accepted. Should not be accepted. Should be reevaluated to increase its ratio. Is not good enough for a government project. Show Transcribed Text
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- vered of 10.00 ion Calculate the conventional benefit-cost ratio for the alternative: Initial Investment Revenues Costs Salvage Value Useful life MARR Select one: a.1.3130 b.1.2960 c.1.4659 d.1.3681 e.1.2114 Determine the FDD ( 350000 150000 55000 120000 7 0.1A certain masonry dam requires 500,000 cu.m. of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B 1.0 km Average distance, gravel pit to dam 4.0 km site Gravel cost/cu.m. at pit Purchase price of pit Road construction necessary Overburden to be removed at P50.00/cu.m. Hauling cost per cu.m. per km P415.00 ------- P800,000.00 P450,000.00 None 80,000 cu.m. P7.00 P7.00 Which of the two sites will give lesser cost?Production capacity of neck process. There are two alternatives, a and B. The annual fixed cost of scheme a is US $40000 and that of scheme B is US $30000; the unit variable cost of scheme a is US $10 / piece and that of scheme B is US $11 / piece. Revenue can be realized for each piece 15 $ 1Calculate the break even point of the two schemes. 2What kind of output can the two schemes achieve the same profit? 3) If the annual demand is expected to be 12000 units, which option can achieve higher profits?
- The Cash flow diagram for any project represents summary of benefits and costs. Select one: O True FalseA certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m³ at pit ➖➖➖➖➖ P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m³ ➖➖➖➖➖➖ Hauling cost/m³/km P4 P4 What is the Total Cost of Source A15-23 For the following projects what is the opportunity cost of capital if the budget is (a) $60,000, and (b) $120,000? If Project 4 has an external environmental cost of S1000 annually that is included, (c) how does this change the answer to (a)? (d) How does this change the answer to (b)? G Project Life (years) First Cost Annual Benefit Salvage Value 1 20 $20,000 $4000 2 20 20,000 3200 $20,000 30 20,000 3300 10,000 15 20,000 4500 5 25 20,000 4500 -20,000 6. 10 20,000 5800 7 15 20,000 4000 10,000 4.
- Based on cost-benefit analysis, New Normal University should undertake Level Multiple Choice O O C Two Three.. Four FiveA local government in Virginia is considering three different alternatives for a sewage treatment plant. The type of equipment and technology needed are quite different in each case. The following summarizes the economic data for all the alternatives Alt. B 5,600,000 600,000 1,000,000 Alt. A Alt. C Equipment costs O &M costs/year Annual benefits 4,350,000 450,000 640,000 6,500,000 750,000 1,300,000 The economic life of the project is 40 years. The locality's cost of funds is 8%. Use conventional benefit-cost analysis and incremental analysis to determine which alternative should be recommended. Note that doing nothing is not an alternative.What is he social and financial implictions of generic pricing decisions for various stakeholders?
- What is the benefit-cost ratio and the net benefits of a highway investment with the following characteristics: a. Construction cost: $50,000,000 b. Annual highway operating cost: $500,000 C. Service life: d. Interest rate: 6% 25 years e. Year 1 traffic: 1,000,000 vehicles per year f. Year 1 savings in travel time: 30 minutes, value of travel time savings is $15.00 per hour g. Traffic growth rate: 2% per year compounded annuallyPLEASE SHOW GIVEN AND REQUIRED Use AW method to calculate the benefit/cost ratio at i = 6% for a new library. The first cost is $500K, and O&M costs are $100K per year. There is no salvage value after 30 years. Community benefits are estimated to be $130K per year. Is the library economically justified? Write a brief interpretation of your answer.For this question, use the following information: A В D E Initi al Investment -3,300 -6,500 -5,000 -8,000 -4,000 Annual Benefit 700 1,200 900 1,400 850 Salvage Value 100 400 300 1,000 200 Useful life 10 10 10 10 10 IRR 16.85% 13.49% 12.86% 12.67% 17.01% E-A C-A В-А D-A D-B Delta IRR 17.74% 4.63% 9.92% 9.76% 9.47% С-Е В-Е D-E В-С D-C Delta IRR -7.43% 7.50% 8.31% 15.52% 12.38% Which alternate should be selected if MARR is 9% (mutually exclusive)?