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? Capital investment Resale value Net annual benefit 8% n 1 2 3 4 5 6 7 8 9 10 |=DBHK| 11 12 13 14 15 Find F Given P F/P 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 Optimistic Most Likely Pessimistic Single Payment Compound Present Amount Worth Factor Factor 2.332 2.518 2.720 2.937 3.172 $2,061,634 $2,433,171 $2,716,254 $2,567,828 $2,493,588 $2,259,154 $276,161 $231,071 $231,071 $217,683 Find P Given F P/F .9259 .8573 .7938 7350 .6806 .6302 .5835 5403 .5002 4632 .4289 .3971 .3677 3405 3152 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 Compound Interest Factors Uniform Payment Series Capital Recovery Factor Find A Given P A/P 1.0800 5608 .3880 .3019 .2505 2163 .1921 .1740 .1601 .1490 .1401 .1327 .1265 .1213 .1168 Compound Amount Factor Find F Given A F/A 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 Arithmetic Gradient Present Gradient Gradient Worth Uniform Factor Series 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 Find A Given G A/G 0 0.481 0.949 1.404 1.846 2.276 2.694 3.099 3.491 3.871 4.240 4.596 4.940 5.273 5.594 Present Worth Find P Given G P/G 0 0.857 2.445 4.650 7.372 10.523 14.024 17.806 21.808 25.977 30.266 34.634 39.046 43.472 47.886 8% n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15