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7.2(9 pts) Consider Alternative A below and respond as prompted 1. Diagram costs only using the usual end-of-year convention 2. Diagram benefits only using the
7.2(9 pts) Consider Alternative A below and respond as prompted 1. Diagram costs only using the usual end-of-year convention 2. Diagram benefits only using the usual end-of-year convention 3. Compute the present value of all benefits 4. Compute the present value of all costs 5. Compute the benefit-cost ratio 6. Compute the net present value ALTERNATIVE A Last Name A-H Last Name - N Last Name O-Z Discount rate (%) 3.0 5.0 3.0 Initial capital investment 11.0 16.0 20.0 ($M) Project service life (years) 5 Annul system operations and 2.0 in the first year; uniform 1.5 in the first year; uniform 3.5 in the first year; uniform maintenance ($M) over all years over all years over all years End-of-project-life salvage 0.5 1.0 ($M) 10 15 5.0 Annual travel time savings ($M) 1.75 2.75 4.75 7.2(9 pts) Consider Alternative A below and respond as prompted 1. Diagram costs only using the usual end-of-year convention 2. Diagram benefits only using the usual end-of-year convention 3. Compute the present value of all benefits 4. Compute the present value of all costs 5. Compute the benefit-cost ratio 6. Compute the net present value ALTERNATIVE A Last Name A-H Last Name - N Last Name O-Z Discount rate (%) 3.0 5.0 3.0 Initial capital investment 11.0 16.0 20.0 ($M) Project service life (years) 5 Annul system operations and 2.0 in the first year; uniform 1.5 in the first year; uniform 3.5 in the first year; uniform maintenance ($M) over all years over all years over all years End-of-project-life salvage 0.5 1.0 ($M) 10 15 5.0 Annual travel time savings ($M) 1.75 2.75 4.75
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