Solution-Set up a spreadsheet for bc sensitivity analysis

Set up a spreadsheet for bc sensitivity analysis

Reference no: EM13882148

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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Set up a spreadsheet for bc sensitivity analysis : 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.

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Set up a spreadsheet for bc sensitivity analysis

Reference no: EM13882148

Reference no: EM13882148

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