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    M2 Quiz Wiley-1

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    blueeskiezz
    The county will invest $5.6 million to clean up a chemical spill. $1.2 million will be spent in the 12th year to restore the site. The investment is expected to generate $2.5 million in annual benefits in the first year, decreasing 26% each year. The document provides calculations to determine the benefit-cost ratio of the investment is 0.46 using a 4% MARR.

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    M2 Quiz Wiley-1

    Uploaded by

    blueeskiezz
    26 views8 pages
    The county will invest $5.6 million to clean up a chemical spill. $1.2 million will be spent in the 12th year to restore the site. The investment is expected to generate $2.5 million in annual benefits in the first year, decreasing 26% each year. The document provides calculations to determine the benefit-cost ratio of the investment is 0.46 using a 4% MARR.

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    M2_QUIZ_WILEY-1

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    The county will invest $5.6 million to clean up a chemical spill. $1.2 million will be spent in the 12th year to restore the site. The investment is expected to generate $2.5 million in annual benefits in the first year, decreasing 26% each year. The document provides calculations to determine the benefit-cost ratio of the investment is 0.46 using a 4% MARR.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    26 views8 pages

    M2 Quiz Wiley-1

    Uploaded by

    blueeskiezz
    The county will invest $5.6 million to clean up a chemical spill. $1.2 million will be spent in the 12th year to restore the site. The investment is expected to generate $2.5 million in annual benefits in the first year, decreasing 26% each year. The document provides calculations to determine the benefit-cost ratio of the investment is 0.46 using a 4% MARR.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Q1

    A county will invest $5,600,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 12-year planning horizo
    $1,200,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual be
    decrease by 26% each year. The net annual public benefit in the 1st year is estimated to be $2,500,000. Determine the B/C ratio for the investm
    MARR.

    INVESTMENT $ 5,500,000.00
    n 10
    Additional $ 1,200,000.00
    g 25% each year
    A $ 2,600,000.00 1st year
    i 8%
    PW OF BENEFITS 2.95
    7673277.16

    PW OF COSTS 6055832.19
    0.46
    1.267

    Q2

    Invested $ 1,748,000.00
    Annual Amount $ 400,000.00
    Rate 19%

    NPER (DPBP) 10.20 years


    11 years
    Q3

    initial installation $ 35,000,000.00


    n after 1st year 10 years
    minor R&R $ 12,000,000.00
    n after 2nd years 20 years
    major R&R $ 20,000,000.00
    O&M $ 2,000,000.00
    rate 3%

    $ 69,000,000.00 $ 51,740,748.98
    Capitalized cost $ 120,740,749

    Q4

    Q5
    Q6

    $ 295,000.00
    $ 24,000.00
    $ 3.70
    10
    10%
    PMT $ 48,009.89
    Annual Sales Vol 6489

    Q7
    Drill Press T Drill Press M
    Initial Investment $ 20,000.00 $ 30,000.00
    Estimated Life 10 10 MARR 10%
    Estimated Salv. $ 5,000.00 $ 7,000.00
    Annual O… Cost $ 12,000.00 $ 6,000.00
    Annual M… Cost $ 2,000.00 $ 4,000.00

    ANS
    Future Worth Drill -269,999.00
    Future Worth Drill -230,187.00

    $318,748.49

    $ (269,999) $ (230,187)

    select: DRILL M

    Q8
    Annual worth 3
    Discounted 5
    Capitalized 7
    External rate of 6
    Future worth 1
    Internal rate of 4
    Present worth 2
    12-year planning horizon, an additional
    produce net annual benefits that will
    B/C ratio for the investment using a 4%

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