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1. the MARR is 15%. Three alternatives are available and the associated cash flow is as follow: Year A B C First Cost $1,700 $2,100

1. the MARR is 15%. Three alternatives are available and the associated cash flow is as follow:

Year A B C
First Cost $1,700 $2,100 $3,750
Annual Benefit $1,000 $1,000 $1,000
Useful Life 2 3 6

Answer the following in this format: 1.23

The payback period for Alternative A is

The payback period for Alternative B is

The payback period for Alternative C is

Based on Payback period analysis, Alternative should be selected

2.

Find the conventional payback period for the following project:

First Cost $10,000
Maintenance $500 in Year 1, increasing by $200/year
Income $3,000/year
Salvage $4,000
Useful Life 10 years
MARR 10%

in years

3.

With interest at 10%, what is the benefit-cost ratio for this government project?

Initial Cost $202295
Additional costs at the end of year 1 and year 2 $34284/year
Benefits at end of year 1 and year 2 $0/year
Annual benefits at end of year 3 through year 10 $100320/year

4.

A tax exempt municipality is considering the construction of a new municipal waste water treatment facility. Two different sites have been selected as technically, politically, socially, and financially feasible. The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for the two alternatives are as follow:

Year Alt. A Alt. B
0 - $16293948 - $27246080
1 - 75 $1620181/year $2829425/year

What is the incremental benefit/cost ratio?

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