Case Study 16
A project has the following cost and benefit data.
Initial Cost = $15M
Annual O&M Cost = $500K
Annual Benefit = $4M
The life has the following Probability distribution.
$$\begin{array} { l l }
\text { Life } & \text { Probability } \
7 & 0.20 \
8 & 0.50 \
9 & 0.30
\end{array}$$ MARR = 8%
-Compute the conventional B/C ratio for a life of 9 years.

Question

Case Study 16
A project has the following cost and benefit data.
Initial Cost = $15M
Annual O&M Cost = $500K
Annual Benefit = $4M
The life has the following Probability distribution.
 $$\begin{array} { l l } 
\text { Life } & \text { Probability } \
7 & 0.20 \
8 & 0.50 \
9 & 0.30
\end{array}$$ MARR = 8%
-Compute the conventional B/C ratio for a life of 9 years.

Quizplus · Accepted Answer

The Answer of Case Study 16
A project has the following cost and benefit data.
Initial Cost = $15M
Annual O&M Cost = $500K
Annual Benefit = $4M
The life has the following Probability distribution.
 $$\begin{array} { l l } 
\text { Life } & \text { Probability } \
7 & 0.20 \
8 & 0.50 \
9 & 0.30
\end{array}$$ MARR = 8%
-Compute the conventional B/C ratio for a life of 9 years.

Case Study 16 a Project Has the Following Cost and Benefit

Case Study 16
a Project Has the Following Cost and Benefit