ENGR 345 (Summer 2005)- Quiz 14
Data for two mutually exclusive projects for establishing a highway are given in the table below. Choose the best alternative based on the Benefit-to-Cost ratio (MARR is 10%).
|
|
A |
B |
|
Initial Cost |
200,000 |
300,000 |
|
Annual O&M |
45,000 |
55,000 |
|
Annual Income |
70,000 |
90,000 |
|
Salvage Value |
100,000 |
250,000 |
|
Useful Life |
30 |
30 |
Factors for i = 10%
|
n |
F/P |
P/F |
A/F |
F/A |
A/P |
P/A |
P/G |
G/P |
F/G |
G/F |
A/G |
G/A |
|
30 |
17.4494 |
0.0573 |
0.00608 |
164.4940 |
0.10608 |
9.4269 |
77.0766 |
0.0130 |
1344.9402 |
0.00074 |
8.1762 |
0.1223 |