WorksheetsChapter 9
Total questions: 5
Worksheet time: 8mins
You are deciding between three alternatives and you need to pick the best one. The lifetimes of all machines is 20 years. Assuming a 5% interest rate, which machine should you select? Use B/C ratio analysis to make your decision.
Alternative A
Alternative B
Alternative C
Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis.
Alternative A
Alternative B
Alternative C
If the useful life is 6 years, using MARR=10%, determine the best alternative with the help of B/C ratio, PW analysis and IRR analysis.
Alternative A
Alternative B
Alternative C
The city of Sharjah is considering two designs for a new extension of the city hospital. The patient usage is an estimate of an amount paid by patients for private insurance coverage if the extension is not implemented. The discount rate is 5%, and the life of the building is estimated at 30 years. Use conventional B/C ratio analysis to select design A or B.
Design A
Design B
The four mutually exclusive alternatives below are being compared using the B/C method. What alternative should be selected?
Alternative J
Alternative K
Alternative L
Alternative M
