Set up a spreadsheet for bc sensitivity analysis

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Three engineers made the estimates shown below for two optional methods by which new construction technology would be implemented at a site for public housing. Either one of the two options or the current method may be selected. Set up a spreadsheet for B/C sensitivity analysis and determine if option 1, option 2 or the do-nothing option is selected by each of the three engineers. Use a life of 5 years and a discount rate of 10% per year for all analyses.

 

Engineer Bob

Engineer Judy

Engineer Chen

 

Option 1

Option 2

Option 1

Option 2

Option 1

Option 2

Initial cost, $

50,000

90,000

75,000

90,000

60,000

70,000

Cost, $/year

3,000

4,000

3,800

3,000

6,000

3,000

Benefits, $/year

20,000

29,000

30,000

35,000

30,000

35,000

Dis benefits, $/year

500

1,500

1,000

0

5,000

1,000

Reference no: EM13882148

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