Question
I need only answers without any solutions. Please answer this within 50 minutes from now on. 1 A city government is considering two types of
I need only answers without any solutions.
Please answer this within 50 minutes from now on.
1
"A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $530,000 with annual operating and maintenance costs of $56,000 for the next 13 years. Design B calls for an investment of $290,000 with annual operating and maintenance costs of $81,000 per year for the next 13 years. Fee collections from the residents for both designs would be $94,000 per year. The interest rate is 5%, and no salvage value is associated with either system.
In order to determine which system should be selected, calculate the incremental profitability index (see example 16.4). Enter the incremental PI(i) of A-B rounded to the nearest hundredth as your answer."
2
"Consider three investment projects, 1, 2, and 3. Each project has the same service life, and the benefits (B), investment (I), and costs (C') are given in present-worth dollars below:
Project 1: B = $31,000; I = $16,000; C' = $8,000
Project 2: B = $17,000; I = $9,000; C' = $2,000
Project 3: B = $40,000; I = $21,000; C' = $15,000
If the three projects are mutually exclusive, which project would be the best alternative? You can use incremental benefit-cost ratios or present worth calculations. Enter 1, 2, or 3 as your answer."
3
The following summarizes the costs of treatment of a disease based on four different antibiotics and associated health benefits (effectiveness). Effectiveness is measured as the percent of successful treatment of interventions. Use incremental cost-effectivenss ratios to select the antibiotics that are NOT dominated (see example 16.6). You may select more than one antibiotic.
Antibiotic A
- Cost of treating 100 patients $1220
- Effectiveness 72%
Antibiotic B
- Cost of treating 100 patients $1320
- Effectiveness 74%
Antibiotic C
- Cost of treating 100 patients $1460
- Effectiveness 83%
Antibiotic D
- Cost of treating 100 patients $1440
- Effectiveness 86%
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