A school is overcrowded and there are threeoptions. The

Engineering Economic Analysis | 12th Edition | ISBN: 9780199339358 | Authors: Donald G Newnan

Problem 9-41 Chapter 9

Engineering Economic Analysis | 12th Edition

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Engineering Economic Analysis | 12th Edition | ISBN: 9780199339358 | Authors: Donald G Newnan

Engineering Economic Analysis | 12th Edition

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Problem 9-41

A school is overcrowded and there are threeoptions. The do-nothing alternative corresponds tocontinuing to use modular classrooms. The schoolcan be expanded, or a new school can be builtto split the load between the schools. User ben-efits come from improvements in school perfor-mance for the expanded or new schools. If a newschoolis built, there are more benefits becausemorestudents will be able to walk to school, the aver-age distance for those who ride the school buseswill be shorter, and the schools will be smallerand more student friendly. The disbenefits forthe expanded school are due to the impact of theconstruction process during the school year. Theinterest rate is 8%, and the life of each alterna-tive is 20 years. Which alternative should be cho- sen? What is the incremental ratio for the preferredalternative?ABUser benefits ($M/yr)2.1 3.1User disbenefits ($M)0.8 0First cost ($M)8.8 10.4Operations and maintenance ($M/yr) 0.95 1.7(a)Use the benefitcost ratio.(b)Use the modified benefitcost ratio.(c)Use the public/government version of the B/Cratio.(d)Assume these numbers apply to a private firmand use a present worth index.(e)Are your recommendations for (a) through (d)consistent? Which measure gives the largestvalue? Why?

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Chapter 9, Problem 9-41 is Solved
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Textbook: Engineering Economic Analysis
Edition: 12
Author: Donald G Newnan
ISBN: 9780199339358

This textbook survival guide was created for the textbook: Engineering Economic Analysis, edition: 12. The full step-by-step solution to problem: 9-41 from chapter: 9 was answered by Sieva Kozinsky, our top Engineering and Tech solution expert on 09/09/17, 04:21AM. Engineering Economic Analysis was written by Sieva Kozinsky and is associated to the ISBN: 9780199339358. Since the solution to 9-41 from 9 chapter was answered, more than 224 students have viewed the full step-by-step answer. The answer to “A school is overcrowded and there are threeoptions. The do-nothing alternative corresponds tocontinuing to use modular classrooms. The schoolcan be expanded, or a new school can be builtto split the load between the schools. User ben-efits come from improvements in school perfor-mance for the expanded or new schools. If a newschoolis built, there are more benefits becausemorestudents will be able to walk to school, the aver-age distance for those who ride the school buseswill be shorter, and the schools will be smallerand more student friendly. The disbenefits forthe expanded school are due to the impact of theconstruction process during the school year. Theinterest rate is 8%, and the life of each alterna-tive is 20 years. Which alternative should be cho- sen? What is the incremental ratio for the preferredalternative?ABUser benefits ($M/yr)2.1 3.1User disbenefits ($M)0.8 0First cost ($M)8.8 10.4Operations and maintenance ($M/yr) 0.95 1.7(a)Use the benefitcost ratio.(b)Use the modified benefitcost ratio.(c)Use the public/government version of the B/Cratio.(d)Assume these numbers apply to a private firmand use a present worth index.(e)Are your recommendations for (a) through (d)consistent? Which measure gives the largestvalue? Why?” is broken down into a number of easy to follow steps, and 180 words. This full solution covers the following key subjects: school, use, ratio, expanded, Schools. This expansive textbook survival guide covers 18 chapters, and 1242 solutions.

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