For a residential building project, the developer has estimated the capital investment, net rental revenue, and resale value after 6 years for the following three scenarios. Given the developer's MARR is 8%, what is the estimated B/C ratio of this project? Optimistic Most Likely Pessimistic Capital investment $2,199,708 $2,408,190 $2,658,670 Resale value $2,542,388 $2,474,055 $2,246,799 Net annual benefit $272,929 $242,383 $186,783 896 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.080 9259 1.166 8573 1.260 .7938 1.360 .7350 1.469 6806 Sinking Fund Factor Find A Given F A/F 1.0000 4808 3080 .2219 .1705 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P FIA 1.0800 1.000 5608 2.080 3880 3.246 3019 4.506 2505 5.867 Present Worth Factor Find P Given A PIA 0.926 1.783 2.577 3.312 3.993 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.481 0.857 0.949 2.445 1.404 4.650 1.846 7.372 1 2 3 4 5 Capital investment $2,199,708 $2,408,190 $2,658,670 Resale value $2,542,388 $2,474,055 $2,246,799 Net annual benefit $272,929 $242,383 $186,783 89 896 n A/P n 1 2 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.080 9259 1.166 .8573 1.260 .7938 1.360 .7350 1.469 .6806 1.587 6302 1.714 5835 1.851 5403 1.999 5002 2.159 .4632 2.332 4289 2.518 3971 2.720 3677 2.937 .3405 3.172 3152 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P . Given A F/A 1.0800 1.000 -5608 2.080 .3880 3.246 .3019 4.506 2505 5.867 2163 7.336 .1921 8.923 .1740 10.637 .1601 12.488 .1490 14.487 1401 16,645 .1327 18.977 .1265 21.495 .1213 24.215 1168 27.152 Sinking Fund Factor Find A Given F A/F 1.0000 4808 .3080 .2219 .1705 .1363 .1121 .0940 .0801 .0690 .0601 0527 .0465 0413 0368 4 5 6 7 8 9 10 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.481 0.857 0.949 2.445 1.404 4.650 1.846 7.372 2.276 10.523 2.694 14.024 3.099 17.806 3.491 21.808 3.871 25.977 4.240 30.266 4.596 34,634 4.940 39.046 5.273 43.472 5.594 47.886 2 3 4 5 6 7 8 9 10 12 13 14 15 11 12 13 14 15