Please help, need to solve Engineering Economics with cash flow diagrams (drawin
ID: 1207749 • Letter: P
Question
Please help, need to solve Engineering Economics with cash flow diagrams (drawing) if possible. Thank you!
You have been assigned the task of comparing the economic results of three alternative designs for a state government public works project. The estimated values for various economic factors related to the three designs are given below. The MARK being used is 9% and the analysis period is 15 years. Use the conventional benefit/cost ratio method, with AW as the equivalent worth measure, to select the preferred design for the project. Use the modified B/C ratio method, with PW as the equivalent worth measure, to select the preferred design for the project.Explanation / Answer
A B NPV analys first cosst O&M Benefit Salvage value total first cosst O&M Benefit Salvage value total discount value 1 1240000 1137080 215000 197155 462800 424388 1763000 1616671 204000 187068 522000 478674 0.917 2 1240000 1044080 215000 181030 462800 389678 1763000 1484446 204000 171768 522000 439524 0.842 3 1240000 957280 215000 165980 462800 357282 1763000 1361036 204000 157488 522000 402984 0.772 4 1240000 877920 215000 152220 462800 327662 1763000 1248204 204000 144432 522000 369576 0.708 5 1240000 806000 215000 139750 462800 300820 90000 1763000 1145950 204000 132600 522000 339300 0.65 6 1240000 215000 462800 1763000 1050748 204000 121584 522000 311112 0.596 7 1240000 215000 462800 1763000 964361 204000 111588 522000 285534 0.547 8 1240000 215000 462800 1763000 885026 204000 102408 522000 262044 0.502 9 1240000 215000 462800 1763000 810980 204000 93840 522000 240120 0.46 10 1240000 215000 462800 1763000 743986 204000 86088 522000 220284 210000 0.422 4822360 836135 1799829 90000 1889829.2 11311408 1308864 3349152 210000 3559152 C 1475000 1352575 201000 184317 485500 445203.5 120000 1475000 1241950 201000 169242 485500 408791 1475000 1138700 201000 155172 485500 374806 1475000 1044300 201000 142308 485500 343734 1475000 958750 201000 130650 485500 315575 1475000 879100 201000 119796 485500 289358 1475000 806825 201000 109947 485500 265568.5 1475000 740450 201000 100902 485500 243721 1475000 678500 201000 92460 485500 223330 1475000 622450 201000 84822 485500 204881 9463600 1289616 3114968 120000 13988184 We can see that the highest benefits accrue from PROJECT C