{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

IE341PS12 BC

# IE341PS12 BC - Spring'07 IE 341 ENGINEERING ECONOMY PS#12...

This preview shows pages 1–2. Sign up to view the full content.

Spring ’07 IE 341 – ENGINEERING ECONOMY PS #12 Q1: (11.3) Perform a conventional B-C analysis for the six mutually exclusive alternatives in the table above. Also, compute the conventional B-C values for each individual alternative and compare the values obtained with the modified B-C values. The MARR is 10% per year. Alternative Project A B C D E F Investment \$1000 1500 2500 4000 5000 7000 Annual Savings in cash disbursements 150 375 500 925 1125 1425 Salvage Value 1000 1500 2500 4000 5000 7000 Q2: (11.8) Consider the two types of equipment in the following table and determine which choice is better if a firm desires to invest as long as the B-C ratio is greater than or equal to one. The firm’s MARR is 10% per year. Assume repeatability and show all work. RS-422 RS-511 Capital investment \$500 \$1750 Useful life 6 years 12 years Market (salvage) value \$125 \$375 Annual benefits \$238 \$388 Annual O&M costs \$108 \$113 Q3: (Quiz ’03) 10,000 people are visiting each year a recreational facility, with benefits of \$7 per person. The administration is considering an enlargement plan that will pose an additional annual equivalent cost of \$60,000. However, they estimate that if the

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

IE341PS12 BC - Spring'07 IE 341 ENGINEERING ECONOMY PS#12...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online