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This is based on engineering economics' topic of benefit to cost ratio General Cost: Initial investment Construction cost of A Annual operation & maintenance cost

This is based on engineering economics' topic of benefit to cost ratio

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General Cost: Initial investment Construction cost of A Annual operation & maintenance cost for A $100K $150K $50K Evaluate the feasibility of the project noted in Table Q2a) at MARR=10% in utilizing the BC-ratio approach based on the following considerations: i. In considering the benefit only if the annual benefit is $70K (5 marks) ii. In considering both the benefit ($70k) and disbenefit ($30k) (5 marks) Evaluate the feasibility of the following Projects given in Table Q3(b) and select the most feasible option for the scenario of i = 10% and N = 10 years. Table Q3(e) The annual benefits of Alternative B A B Investment $100K $110K Annual benefit $50K $50K O & M per year $30K $35K Salvage $30K $50K Life cycle 10 10 (10 marks) General Cost: Initial investment Construction cost of A Annual operation & maintenance cost for A $100K $150K $50K Evaluate the feasibility of the project noted in Table Q2a) at MARR=10% in utilizing the BC-ratio approach based on the following considerations: i. In considering the benefit only if the annual benefit is $70K (5 marks) ii. In considering both the benefit ($70k) and disbenefit ($30k) (5 marks) Evaluate the feasibility of the following Projects given in Table Q3(b) and select the most feasible option for the scenario of i = 10% and N = 10 years. Table Q3(e) The annual benefits of Alternative B A B Investment $100K $110K Annual benefit $50K $50K O & M per year $30K $35K Salvage $30K $50K Life cycle 10 10 (10 marks)

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