Question: Problem 1 (Chapter 10 You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. MARR is

 Problem 1 (Chapter 10 You have been requested to recommend oneof the mutually exclusive industrial sanitation control systems that are given below.MARR is 18% per year. Assume that not having to re-invest infive year is an added benefit of the Vacuum-led. Use the B-Cmethod Gravity-fed $27,200 Capital investment Annual receipts less expenses $7,000 Life inyears Vacuum-led $38,500 $7,000 10 5 Question 1) An incremental B-C ratio

Problem 1 (Chapter 10 You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. MARR is 18% per year. Assume that not having to re-invest in five year is an added benefit of the Vacuum-led. Use the B-C method Gravity-fed $27,200 Capital investment Annual receipts less expenses $7,000 Life in years Vacuum-led $38,500 $7,000 10 5 Question 1) An incremental B-C ratio is..... Round to the two decimal places.) Question 2) The system should be selected Problem 2 (Chapter 10 Five independent projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public agency. The following tabulation shows the equivalent annual benefits: Annual Benefits $2,400,000 $6,600,000 2,000,000 $8,500,000 $5,800,000 Annual Costs $2,800,000 $5,300,000 $2,200,000 $6,400,000 $4,000,000 Project Question 3) The rank-ordering of acceptable projects from best to worst . >.... Question 4) When considerable judgment regarding the value of intangible factors is present, project should be selected Problem 3 (Chapter 11) Consider these two alternatives. Capital investment Annual revenues Annual expenses Estimated market value Useful life, vears Alternative 1 $4,500 $1,650 390 $850 9 Alternative 2 $6,500 $1,900 $530 $1,300 12 Question 5) The capital investment of Alternative 2 would have to be. ....or less for the initial decision to be reversed. (Round to the nearest dollar.) Question 6) The life of Alt. 1 for which the AWs are equal isyears. (Round to one decimal place.)

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