This is a 3 point question.  Canvas will not let me put in e…

This is a 3 point question.  Canvas will not let me put in extra credit so if you got this correct I will manually add the points when I review these.   Use present worth to calculate the benefit/cost ratio at i=6% for a highway project.  The first cost is $160K and O&M costs are $5K per year.  There is no salvage value after 20 years.  Time savings to users are worth $40K per year, and neighborhood disruption is a dis-benefit of $15K per year.

The following data is available for two projects.     A  …

The following data is available for two projects.     A  B Initial cost $6000 $900 Uniform annual benefits $600 $300 Useful life in years 20 5   Determine the payback period (not discounted) for each project alternative.  For comparison purposes, compute the equivalent annual worth at 5% interest rate. Comparing the results of your analysis, you conclude