Calculate the conventional b/c ratios

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1. Calculate the conventional b/c ratios for alternate a. is alternate aeconomically justified?

2. Calculate the modified b/c ratio for alternate a. is alternate a economically justified?

4. perform a life cycle cost analysis on alternate a.

5. Perfrom a life cycles savings analysis on alternate a.

6. Perform a break-even quantity analysis to calculate thenumber of projects that must be undertaken each year to justify

Alternative a.  The laborfor alternate ais $14.00 per hour alternate a can produce 1 project/10 hr.

                   proposal                                    initial cost

Alternate a                            $35,000

                         alternate b$70,000

Ce 3360/3361                                                                                                                    -3-

Project ii -fall2013name:_______________

Alternate a

Interest on                       10.38%/year

    cost

Interest on                       +1.5%                                        

   revenue

Aw initial                            -$11.1k/yr

   cost

Aw technical-$0.7k/yr

Support

Aw upgrades   -$0.71k/yr

Aw revenue +$4.9k/yr

Aw salvage                       +$.86k

Pw salvage                           +$3.2k                                         

Life                                       4 years                                    

By signing this page, i stipulate that i have not given nor received any help in completing this project______________________________

   project ii: due  3december 2014

200_Cash flow diagram1.png

Reference no: EM13763400

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