%) Problem 10-14 (algorithmic) Question Help A new storm ainana systam mu t ba c

Question

%) Problem 10-14 (algorithmic) Question Help A new storm ainana systam mu t ba constructed t away to reduce penodic laading that ccurs in a city that in a allay FRa mutualy exclusve des gns have been proposed. and their present worth in thouands of dollars)o cots and beneits are the fo lowing. Srsrem Rystam hia thaastatn? b. Which system has the lrgeat incremental B-Craio based on d fferences between atematives? $14,000 $10 uu $4 00u PN 1 7.nnt] 24.000 16aan ,dan 120da a. Syste 1 hs the grsaest C raio, which s.0.Rcund to two decdmal plzces

Explanation / Answer

                                        1                      2                       3                      4                      5 PW of Costs                                900.00 14000         10,000.00 4000 4000 PW of Benefits                             7,000.00 24000 16000 7000 12000 B-C Ratio                                    7.78                 1.71                  1.60                 1.75                 3.00 Sorting in order of increasing PW of costs 1.00                      4                       5                      3                      2 PW of Costs                                900.00 4000 4000        10,000.00 14000 PW of Benefits                             7,000.00 7000 12000 16000 24000 Comparison Between 1 & Do nothing Between 4 & 1 Between 5 & 1 Between 3 & 5 Between 2 & 5 PW of incremental Costs 900.00 3,100.00 3,100.00 6,000.00 10,000.00 PW of incremental benefits 7,000.00 0.00 5,000.00 4,000.00 12,000.00 Incremental Benefit/Incremental Costs 7.78 0.00 1.61 0.67 1.20 Increment Justified Yes No Yes No Yes System 2 has the highest incremetal B-C which is 1.20

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