12. 7.32 The city of St. Louis, Missouri, is considering submitted proposals regarding the disposal of used tires. All of the alternatives involve shredding, but the charges for the service and handling of the tire shreds differ in each plan. An incremental B/C analysis was initiated but never completed. 1. Fill in all the missing blanks in the table. 2. Determine which alternative should be selected. Table Summary: Table divided into six columns compares four plans for disposing of used tires in a city. Columns 1 to 5 are marked as: alternative; present worth of costs, in dollars; present worth of benefits, in dollars; present worth of disbenefits, in dollars; and overall benefit by cost ratio. Column 6, delta benefit by cost when compared with alternative, is further divided into two sub-groups through j to m. Alternative PW of Costs, $ PW of Benefits, $ PW of Disbenefits, $ Overall B/C Ratio ΔB/C When Compared with Alternative J K L M J 20 ? 1 1.05 — K 23 28 ? 1.13 ? — L 28 35 3 ? ? ? — M ? 51 4 1.34 ? ? ? — 13. Page 2207.33 (Spreadsheet exercise) The Victoria Water Cooperative must replace old water distribution lines. Four sizes of pipe are available from vendors with installation cost and annual maintenance/usage cost preliminary estimates provided in $ per kilometer. Assuming a 15-year study period and an 8% per year discount rate, which size pipe should be installed based on a B/C analysis? Use a spreadsheet to perform the analysis. Table Summary: Table divided into two columns compares characteristics of four pipes varying in size and cost. Column 1 notes the initial and usage cost, in dollars per kilometer. Column 2, pipe size, in centimeters, is further divided into four sub-groups as: 20; 25; 35; and 40. Pipe Size, Centimeters 20 25 35 40 Initial cost, $ per km 9,800 11,300 14,600 17,300 Usage cost, $ per km6,000 5,800 5,500 4,900