A municipal project has been proposed that will require the development of a series of roads....
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A municipal project has been proposed that will require the development of a series of roads. Four proposals are under consideration, all of which have different costs, benefits, and disbenefits. A summary of the four proposals is shown in the table below. Which is the best proposal? The life of the roads is expected to be 47 years for all four options. The applicable interest rate is 5.00% compounded yearly. Benefit ($/year) Disbenefit ($/year) Initial Cost ($) Maintenance & Operating Cost ($/year) Option W $2,970,000.00 $429,000.00 Option X $431,600.00 $2,770,300.00 $347,520.00 $32,750,164.00 $22,669,511.00 $392,080.00 Option Y $2,598,000.00 $411,540.00 Option Z $478,556.00 $2,907,700.00 $377,400.00 $18,267,423.00 $45,598,200.00 $388,805.00 A municipal project has been proposed that will require the development of a series of roads. Four proposals are under consideration, all of which have different costs, benefits, and disbenefits. A summary of the four proposals is shown in the table below. Which is the best proposal? The life of the roads is expected to be 47 years for all four options. The applicable interest rate is 5.00% compounded yearly. Benefit ($/year) Disbenefit ($/year) Initial Cost ($) Maintenance & Operating Cost ($/year) Option W $2,970,000.00 $429,000.00 Option X $431,600.00 $2,770,300.00 $347,520.00 $32,750,164.00 $22,669,511.00 $392,080.00 Option Y $2,598,000.00 $411,540.00 Option Z $478,556.00 $2,907,700.00 $377,400.00 $18,267,423.00 $45,598,200.00 $388,805.00
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Related Book For
Principles of Information Systems
ISBN: 978-1133629665
11th edition
Authors: Ralph Stair, George Reynolds
Posted Date:
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