hw5 - 16-12PW of Benefits / PW of CostsGravity: PW of Costs...

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Unformatted text preview: 16-12PW of Benefits / PW of CostsGravity: PW of Costs = 2,800,000 +10,000(P/A, 8%, 40)PW of Benefit = 200,000(P/A, 8%, 40) + 50,000(P/A, 8%, 10) + 100,000(P/A, 8%, 30) + 15,000(P/A, 8%, 40)Pumping: PW of Costs = 1,400,000 + 200,000(P/A, 8%, 40) + 25,000(P/A, 8%, 40) + 50,000(P/A, 8%, 10) + 100,000(P/A, 8%, 30)PW of Benefit = 1,400,000 Pumping is the more economical plan.16-24Alt. A B/C RatioPW Benefit = 2,200,000(P/A, 8%, 30) + 1,000,000(P/F, 8%, 30) 350,000(P/A, 8%, 30) = 20926700PW Cost = 9,500,000 + 550,000(P/A, 8%, 30)= 15691900B/C Ratio = 1.334Alt. B B/C RatioPW Benefit = 1,500,000(P/A, 8%, 30) + 6,000,000(P/F, 8%, 30) 150,000(P/A, 8%, 30) =15794700PW Cost = 12,500,000 + 175,000(P/A, 8%, 30)B/C Ratio = .0287Alt. C B/C RatioPW Benefit = 1,000,000(P/A, 8%, 30) + 3,500,000(P/F, 8%, 30) 750,000(P/A, 8%, 30) =- 3162400PW Cost = 14,000,000 + 325,000(P/A, 8%, 30)B/C Ratio = .609Alt. D B/C RatioPW Benefit = 2,500,000(P/A, 8%, 30) + 7,500,000(P/F, 8%, 30) 700,000(P/A, 8%, 30) =21009900PW Cost = 15,750,000 + 145,000(P/A, 8%, 30) = 17382410B/C Ratio = 1.208B/C Ratio = 1....
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hw5 - 16-12PW of Benefits / PW of CostsGravity: PW of Costs...

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