Question: do not use excel show all steps for thump up 5 pts Question 2 Two relatively inexpensive alternatives are available for reducing potential earthquake damage
5 pts Question 2 Two relatively inexpensive alternatives are available for reducing potential earthquake damage at a local government research facility. The cash flow estimates for each alternative are given below. At an interest rate of 6% per year, use the B/C ratio method to determine which one should be selected. Use a 20 year study period, and assume the earthquake damage costs occur in the middle of the study period (i.e., in year 10). In addition, the earthquake damage cost without either of the alternatives is estimated at $6,000,000. Alternative 1 Alternative 2 Initial cost, $ 600,000 1,100,000 Annual upkeep, $/year 50,000 70,000 Potential earthquake damage cost, $ 950,000 250,000 Notes: 1. The Do Nothing alternative is feasible. 2. No credit will be awarded if the decision is not based on a B/C analysis
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