Two alternatives are available for the construction of a football stadium. Alternative 1: 107659736 has a construction
Question:
Two alternatives are available for the construction of a football stadium.
Alternative 1: 107659736 has a construction cost of TL and an economic life of 50 years. Maintenance and operating expenses are 391809 TL per year. 25. additional renovation and interior design costs of £ 591057 per year are available.
Alternative 2: has an economic life of 50 years and costs £ 58115743. Maintenance and repair costs will increase by TL 11274 each year compared to the previous year after TL 80582 in the first year. Periodic maintenance costs are available every 10 years at a cost of us $ 69704.
After income, which is us $ 404958 in the first year for Alternative 1, will increase by us $ 129820 each year compared to the previous year. Income for alternative 2 is £ 269636 per year for 50 years. Due to natural resources and environmental impacts, additional annual costs of TL 42219 and TL 36815 are available for Alternative 1 and Alternative 2, respectively. The scrap value for Alternative 1 and Alternative 2 is 8625533 TL and 4263022 TL and annual KEMKO = 8%.
Calculate the benefit/cost (b / c) ratio for IA-EIA (good alternative - Best Alternative) to be used for alternative selection with Benefit/Cost Analysis and current value calculation ?????
Reminder:
B (Benefit) = Net Benefit To The User
C (Cost) = Cost Of The Supplier
Note: you can use the interest table provided in the appendix. Enter your answer in two decimals. For example, if you have calculated 1.1151, enter your answer as 1.15. The answer is unitless and you do not need to enter a unit.
Tip: you should consider natural resource and environmental effects as negative benefit, scrap value as negative cost. Determine IA and EIA among the alternatives and calculate the b/c ratio for IA-EIA.