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n prol t go nonprofit government corporation is considering two alternatives for

ID: 1224299 • Letter: N

Question

n prol t go nonprofit government corporation is considering two alternatives for ent corporation is considering two alternatives for generating power The use ife of both ahe r at es is 40 years sing an inerest rate of 4%, determine which a er wive ret e hould be selected according to the conventional B-C-ratio method. Click the loon to view the additional information about the alternatives e Cick the icon to view the interest and annuity table for discreto compounding when the MARR is 4% per year. erform, the conventional B-C Analysis. FiAn the table below. (Round to two decimal places.) B-C ratic is the alternative acceptable? Yes Yes 1.14 1.22 The incremental B-C ratio is 1.54, thus the aitemative B should be selected. (Round to two decimal places More Info Altemative A Build a coal-powered generating faclity at a cost of $23,000,000 Annual power saies are expected to be $1,000,000 per year. Annual operating and maintenance oosts are $200,000 per year. A beneft of this aternative is that it is expected to attract new industry, worth $550,000 per year, to the region Atemative B. Buid a hydroelectric generating facility The capital investment, power sales, and operating costs are $31,000,000, $900,000, and $120,000 per year, respectively. Arnual beneits of this alternative are as follows: $600,000 $150,000 $100,000 Irrigation Ability to atvact new industry $300,000 Print Done

Explanation / Answer

they are calculated with principle