A consulting engineer is currently evaluating 4 different methods for conserving water at a wast power generation station operated by the US park service. Each method has a life of 20 years. Estimates of the costs, benefits , dis benefits,and costsavings are shown.Using Net Benefits Cost evaluation method,calculate and report the B/C economic measure for each method and extensions of this method for competing alternatives using an interest rate of 10% per year. Based on your analysis identify which of the method if any should be recommended.
Lowet MiniH2O Litulwet Wetstop
Purchase cost $ 1,000,000 800,000 2,000,000 1,400,000
equivalent annul worth of external benefits $ 1,500,000 1,100,000 1,500,000 420,000
equivalent annul worth of external disbenefits $ 600,000 100,000 200,000 310,000
annual water cost saving $ 150,000 200,000 160,000 300,000
A consulting engineer is currently evaluating 4 different methods for conserving water at a wast power generation station operated by the US park service. Each method has a life of 20 years. Estimates of the costs, benefits , dis benefits,and costsavings are shown.Using Net Benefits Cost evaluation method,calculate and report the B/C economic measure for each method and extensions of this method for competing alternatives using an interest rate of 10% per year. Based on your analysis identify which of the method if any should be recommended.
Lowet MiniH2O Litulwet Wetstop
Purchase cost $ 1,000,000 800,000 2,000,000 1,400,000
equivalent annul worth of external benefits $ 1,500,000 1,100,000 1,500,000 420,000
equivalent annul worth of external disbenefits $ 600,000 100,000 200,000 310,000
annual water cost saving $ 150,000 200,000 160,000 300,000
