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
|