Business, 05.05.2021 22:50 LilRed3223
The Fishery and Wildlife Agency of Ireland is considering four mutually exclusive design alternatives for a major salmon hatchery. This agency of the Irish government uses the conventional B/C ratio (incremental) for decision making. Salvage value is considered a benefit and not an offsetting value to first cost. Using an interest rate of 9% and a project life of 30 years, recommend which design is best. Doing nothing is not an option.
A B С D
First cost 11000 12000 14000 15000
Annual benefits 1600 1800 1000 2300
Annual O&M costs 200 300 325 300
Annual disbenefits 200 200 50 500
Salvage value 1500 3500 4000 5000
i. B
ii. C
iii. A
iv. D
Answers: 3
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