class_ch.9

# class_ch.9 - \$6,500,000.00 n = 20 i = 8 Upgrade P =...

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B/C { PW(B)/PW(cost) { AW(B)/AW(cost) { FW(B)/FW(cost) 9.2 Initial Cost = 15,000,000 AW = 15,000,000(A/P Benefit = 1,500,000 Disbenefit = 200,000 500,000 Costs = 2,538,050 Benefit = 1,300,000 B/C = 0.512 Modified B/C = 0.393 9.3 Bypass P = \$40,000,000.00 AW = \$4,074,000.00 An. Main. = \$1,500,000.00 B =

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Unformatted text preview: \$6,500,000.00 n = 20 i = 8% Upgrade P = \$4,000,000.00 AW (4%)= \$426,200.00 An. Main. = \$150,000.00 AW (8%)= \$530,800.00 B = \$650,000.00 n = 12 i = 4% B/C Bypass = 1.17 B/C Upgrade = 1.13 B/C Upgrade(8%) = 0.95 No, at 8% it is not justified. ,6%.10) = 2,038,050...
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## This note was uploaded on 04/11/2010 for the course MST 502 taught by Professor Atals during the Spring '10 term at SUNY IT.

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class_ch.9 - \$6,500,000.00 n = 20 i = 8 Upgrade P =...

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