Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is for an engineering economy class, your help is much appreciated! Please let me know if the photo is too blurry. In the aftermath

This is for an engineering economy class, your help is much appreciated! Please let me know if the photo is too blurry. image text in transcribed

In the aftermath of Hurricane Thelma, the U.S. Army Corps of Engineers is considering two alternative approaches to protect a freshwater wetland from the encroaching seawater during high tides. The first alternative, the construction of a 5-mile long, 20-foot-high levee, would have an investment cost of $27,000,000 with annual upkeep costs estimated at $675,000. A new roadway along the top of the levee would provide two major benefits: (1) improved recreational access for fishermen and (2) reduction of the driving distance between the towns at opposite ends of the proposed levee by 11 miles. The annual benefit for the levee has been estimated at $1,300,000. The second alternative, a channel-dredging operation, would have an investment cost of $16,000,000. The annual cost of maintaining the channel is estimated $325,000. There are no documented benefits for the channel-dredging project. Using a MARR of 8% and assuming a 20-year life for either alternative, apply the incremental B-C ratio (AB/AC) method to determine which alternative should be chosen. (Note: The null alternative, Do nothing, is not a viable alternative.) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The incremental B-C ratio is thus alternative should be chosen (Round to two decimal places.) N 1 2 3 4 5 6 7 8 9 10 11 12 13 11 12 13 14 15 16 17 18 Discrete Compounding; i = 8% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AF 1.0800 0.9259 1.0000 0.9259 1.0000 1.1664 0.8573 2.0800 1.7833 0.4808 1.2597 0.7938 3.2464 2.5771 0.3080 1.3605 0.7350 4.5061 3.3121 0.2219 1.4693 0.6806 5.8666 3.9927 0.1705 1.5869 0.6302 7.3359 4.6229 0.1363 1.7138 0.5835 8.9228 5.2064 0.1121 1.8509 0.5403 10.6366 5.7466 0.0940 1.9990 0.5002 12.4876 6.2469 0.0801 2.1589 0.4632 14.4866 6.7101 0.0690 2.3316 0.4289 16.6455 7.1390 0.0601 2.5182 0.3971 18.9771 7.5361 0.0527 2.7196 0.3677 21.4953 7.9038 0.0465 2.3316 0.4289 16.6455 1.1390 U.UBU 2.5182 0.3971 18.9771 7.5361 0.0527 2.7196 0.3677 21.4953 7.9038 0.0465 2.9372 0.3405 24.2149 8.2442 0.0413 3.1722 0.3152 27.1521 8.5595 0.0368 3.4259 0.2919 30.3243 8.8514 0.0330 3.7000 0.2703 33.7502 9.1216 0.0296 3.9960 0.2502 37.4502 9.3719 0.0267 4.3157 0.2317 41.4463 9.6036 0.0241 4.6610 0.2145 45.7620 9.8181 0.0219 5.0338 0.1987 50.4229 10.0168 0.0198 5.4365 0.1839 55.4568 10.2007 0.0180 5.8715 0.1703 60.8933 10.3711 0.0164 6.3412 0.1577 66.7648 10.5288 0.0150 6.8485 0.1460 73.1059 10.6748 0.0137 10.0627 0.0994 113.2832 11.2578 0.0088 14.7853 0.0676 172.3168 11.6546 0.0058 21.7245 0.0460 259.0565 11.9246 0.0039 31.9204 0.0313 386.5056 12.1084 0.0026 46.9016 0.0213 573.7702 12.2335 0.0017 Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 0.1401 0.1327 0.1265 U.1401 0.1327 0.1265 0.1213 0.1168 0.1130 0.1096 0.1067 0.1041 0.1019 0.0998 0.0980 0.0964 0.0950 0.0937 0.0888 0.0858 0.0839 0.0826 0.0817 19 20 21 22 23 24 25 30 35 40 45 50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions