The government is planning a hydroelectric project for a river basin. In addition to the production of electric power, this project will provide flood control, irrigation and recreation benefits. The estimated benefits and costs that are expected to be derived from this project are listed below. Initial cost = 180,000,000 Annual power sales = 12,000,000 Annual flood control savings = # 5,000,000 Annual irrigation benefits = 8,000,000 Annual recreation benefits = 4,000,000 Annual operating and maintenance costs = 5,000,000 Life of the project = 40 years Required: Check whether the government should implement the project (assume i = 15%).
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- The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton. One method of processing costs Php 1,650 per ton and recovers 93% of the gold, while another method costs only Php 1,500 per ton and recovers 81% of the gold. If gold can be sold at Php 8,500 per gram, which method is better and by how much? Hint: Consider the income and cost per ton of ore. Solve for the net receipt of each method. Note: Write only A or B for the better method (first blank). Input numerical answers only on the savings (second blank), do not type the units, space or comma. Answers: Better method Savings: PhpWhat is the 5-year Benefit-Cost-Ratio (BCR) at 10% interest rate for an equipment project with the immediate installation cost of -$2500 (in year 0) and a maintenance cost of -$1500 in year 3, and annual benefit of $1000 from the first year onward (n=1 to 5)? Select one: OA. 1.095 OB. 1.145 OC. 1.140 OD 1.045 OE. 1.175I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.
- SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical Me (VSL) needed to justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).A certain masonry dam requires 200,000 cu m of gravel for its construction. The contractor found two possible sources of gravel with the following data: Average distance gravel pit to dam site Gravel cost /cu.m at pit Purchase price of pit Road construction necessary Overbuden to be removed at P4.20 cu.m Hauling cost per cu.m per km Which of the two sites will give lesser cost? Source A 3.0 km P800,000.00 P350,000.00 P5.00 Source B 1.2 km P10.00 80,000 cu.m P5.00The project is to construct a lateral canal that will provide irrigation for 150 ha production area along the ricefields of a town| and it is being considered by the municipality. The locality has two (wet and dry) croppings. A one (1) ha ricefarm yields 90 çavans for rainfed areas. The following costs have been identified. Land: 800 meters long x 6 meters parcel of land at Php 950.00 per ha 4,500,000.00 500,000.00 250,000.00 Construction: Annual O&M (government): Annual O&M (farmer irrigators): Rental receipts from irrigators: 17 çav/ha Convenience to farmers: 500,000.00 Yield increase: 22% Neglecting other factors associated with production yield increase, determine the B/C ratio of the project with a MARR of 10% per year if the project is to be used for 25 years. Is the project acceptable?
- A local government is considering promoting tourism in the city. It will cost$8,000 to develop a plan.111e anticipated annual benefits and costs are as follows:Annual benefits: Increased local income and tax collections $ 125,000Annual support service: Parking lot expansion, restroom. $50,000the patrol car, and street repairIf the city government uses a discount rate of 8% and a study period of fiveyears. is this tourism project justifiable according to the benefit-cost analysis?The city of Jefferson is reviewing the benefits and costs of a potential universal water-metering program. Two options are considered:• Option I: Treated Surface Water Only Benefits of Deferring/DownsizingWater and Sewer Projects-$28.l millionCosts of Metering-$9.3 million Benefit-Cost Ratio-3.02• Option 2: Treated Surface Water Supplemented By 40 MUDay Groundwater Benefits of Deferring/Downsizing Water and Sewer Projects-$38.9 millionCosts of Metering (and groundwater development)-$14.7 millionBenefit-Cost Ratio-2.65 Which option should the city implement, assuming that the city has enough money to fund either project?(a) Option 1.(b) Option 2.(c) Neither.( d) Both options.Provide a dissemination process to ensure stakeholders are informed and committed to the plan.? (This should also include a clear outline of the dissemination process that will be used to ensure that stakeholders are informed of the plan and how commitment will be generated)
- 3. In a waterflooded mature oil field, a large scale polymer-flooding project is evaluated with a small-scale pilot-test being considered to make a decision. Without the pilot test, the existing waterflooding will continue with an estimated NPV of $36 MM USD. Historically, polymer-flooding pilot tests resulted with promising results in 65% of the cases, and results are representative for large-scale flooding in 70% of the cases (can be considered as right data are collected). • In the case of a promising pilot-test, large scale project will have an NPV of $80 MM, but if the pilot test is not representative (is wrong), this will result in a loss of $40 MM USD. • In the case of a not-promising pilot-test, existing waterflood will continue as it is, with an NPV of $36 MM USD. Calculate the value-of-information of the pilot test, by considering Lohrenz's Method.* Your answers are incorrect. A county will invest $4,200,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 9-year planning horizon, an additional $1,000,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 29% each year. The net annual public benefit in the 1st year is estimated to be $2,300,000. Determine the B/C ratio for the investment using a 4% MARR. Click here to access the TVM Factor Table calculator. B/C = 13.499 Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.1. Use the first four steps of the decision-making process to generally describe the alternatives and identify what economic-related estimates you will need to complete an engineering economy analysis for the president. 2. Identify any noneconomic factors and criteria to be considered in making the alternative selection. 3. During your inquiries about alternative B from its manufacturer, you learn that this company has already produced a prototype molding machine and has sold it to a company in Germany for $3 million (U.S.dollars). Upon inquiry, you further discover that the German company already has unused capacity on the equipment for manufacturing plastic shells.The company is willing to sell time on the equipment to Innovations immediately to produce its own shells for U.S.delivery. This could allow immediate market entry into the United States.Consider this as alternative C,and develop the estimates necessary to evaluate C at the same time as alternatives A and B.