The Water holding company is considering replacing old networks of pipelines in three different residential zones to reduce the number of pipe breaks and the associated costs, and to increase the hydraulic capacity in terms of volume of water. However, the current available budget is limited, so the company has to choose one zone to execute. The company is willing to raise the tariff of water meter to compensate the associated costs. The companys annual MARR is 6%. Network zone Zone X Zone Y Zone Z Network length (Km) 20 15 30 Replacement Cost (EGP) per Km 1.5 million 1.5 million 1.5 million Reduction in no. of breaks per year 20 25 40 Cost of repair per break 20,000 20,000 20,000 The increase in Water meter tariff (EGP per m3 of water) 1.8 1.2 2 Estimated increase in volume of potable water (m3 per year) 600,000 500,000 700,000 Reduced number of service interruptions for the consumer (water cut off) per year 15 10 15 Monetary Value of each service interruption per household 150 80 200 Number of households 1200 800 1400 Estimated life (years) 20 20 20 1. Preparing for a Benefit-Cost Analysis, answer the following questions: a) What is the annual worth of Net Costs for zones X, Y, & Z? b) What is the annual worth of Net Benefits for zones X, Y, & Z? c) What is the BC ratio for each zone X, Y, & Z, based on AW calculations? 2. Using BC incremental comparison, which zone is the best alternative?

Destion. Pris: Tlk. Weeboking compascogneplacing two of splicitate diferent residential o lo reduce the name of pipe breaks and the associated coss, and Dane te lirali yoys of volume olvate. Hierdie met zwili hudget is limited so the ompany has in chceme me to cecule. The reputy is wilag to raise Cue tan :1d water meter to compensate le associateicots. The company's LI MARKM LAY ZZ 31 1.3 milie 1.3 millon Nenurk Zene X NA Newarkleyhun Raplacen/F.) 15 million Redakticna sobre: per year tofur er break 2010 The inte in Wak- der briTF13 Esinskalixtus is due tot want to perar Recruiter of niet te lumivalteller Vier Value Sharris: in-apire per bab1 Nu berhadas literary 702222 972,00 10 IS 1. Pregang for a Derelit-C Analysis, answer the following questions: a) Wat is the anal worth of Net Costs fx zones X, Y, &Z? b) Waal is the anal worth of Net Benefits formes X,Y,&Z? c) What is the orchio for exhone X, Y,&2, based on AW calcuxore! 1. Csing incremental cortparion, which one is the hecatemene? Destion. Pris: Tlk. Weeboking compascogneplacing two of splicitate diferent residential o lo reduce the name of pipe breaks and the associated coss, and Dane te lirali yoys of volume olvate. Hierdie met zwili hudget is limited so the ompany has in chceme me to cecule. The reputy is wilag to raise Cue tan :1d water meter to compensate le associateicots. The company's LI MARKM LAY ZZ 31 1.3 milie 1.3 millon Nenurk Zene X NA Newarkleyhun Raplacen/F.) 15 million Redakticna sobre: per year tofur er break 2010 The inte in Wak- der briTF13 Esinskalixtus is due tot want to perar Recruiter of niet te lumivalteller Vier Value Sharris: in-apire per bab1 Nu berhadas literary 702222 972,00 10 IS 1. Pregang for a Derelit-C Analysis, answer the following questions: a) Wat is the anal worth of Net Costs fx zones X, Y, &Z? b) Waal is the anal worth of Net Benefits formes X,Y,&Z? c) What is the orchio for exhone X, Y,&2, based on AW calcuxore! 1. Csing incremental cortparion, which one is the hecatemene