Question: help solve for 1,2,4 A city is trying to decide whether or not to build a transfer station for its municipal solid waste. If built,

 help solve for 1,2,4 A city is trying to decide whether

help solve for 1,2,4

A city is trying to decide whether or not to build a transfer station for its municipal solid waste. If built, the collection trucks will haul solid waste to the station for transfer to larger trucks, which will take the solid waste to a landfill. If the transfer station is not built, the collection vehicles will travel to the landfill directly. Cost data are provided in the table. Note that the transfer station must be rehabilitated after 25 years. The MARR is 7%. Alternative 1 (No TS) Alternative 2 (TS) 0 78 10.4 5.2 Initial cost ($ million) Annual operating cost ($ million) Rehabilitation cost at 25 years ($ million) Lifetime (years) 0 26 50 50 Question 1 What is the present worth incremental benefit? Round to 3 decimal places AB 7.12 million ? x 0% Question 2 What is the present worth incremental cost? Round to 3 decimal places AC 143.5 million x0% Question 3 Which alternative should be chosen using the incremental benefit-cost ratio method? Enter integer 1 or 2 (0 for none or 3 for both) Alternative 1 @ 100% Question 4 What is the incremental rate of return? write in decimal form i.e. 0.0500 for 5%. Round to 4 decimal places 123 ? x 0%

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