1) Three locations for a water tower for the village of Wideplace are being considered. Initial...
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1) Three locations for a water tower for the village of Wideplace are being considered. Initial construction costs and annual operating costs for these sites are given in the table. Assume that the water tower will last forever and that a site must be selected. Using benefit/cost ratio analysis and an interest rate of 9.53101798% per year compounded continuously, which site should be chosen? (Please clearly show which B/C ratio you are using) Site North Downtown 6000000 Southeast Initial Cost 4000000 5000000 360000 610510 Annual Cost 280000 320000 M&O (every 5 years) 610510 610510 Annual Benefit 980000 1100000 1060000 Total Cost/yr Total Benefit/yr B/C ratio 1) Three locations for a water tower for the village of Wideplace are being considered. Initial construction costs and annual operating costs for these sites are given in the table. Assume that the water tower will last forever and that a site must be selected. Using benefit/cost ratio analysis and an interest rate of 9.53101798% per year compounded continuously, which site should be chosen? (Please clearly show which B/C ratio you are using) Site North Downtown 6000000 Southeast Initial Cost 4000000 5000000 360000 610510 Annual Cost 280000 320000 M&O (every 5 years) 610510 610510 Annual Benefit 980000 1100000 1060000 Total Cost/yr Total Benefit/yr B/C ratio
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A1 F G H K 2 Interest rate r 953 3 Site North Downtown Southeast 4 Initial Cost 4000000 6000000 5000... View the full answer
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