Question

Construction Planning And Management

Question 4 (15 points): MarShield Custom Radiation Shielding has $5,000,000 available to spend now in upgrading nationwide plants for manufacturing standard & custom precast concrete, and must decide which project to undertake. Project A is expected to reduce production delays amounting to benefits of$460,000 per year for an investment of $3,000,000 with annual operation and maintenance expenses of$57,000. Project B, costing $4,000,000 initially with operation and maintenance expenses of $81,500 per year, is expected to produce annual savings of $613,000 due to reduced production losses. Each project will have a 50-year useful life and no salvage value for each project. Assume an interest rate of 10%. Use the information above to answer the following questions:

а.Draw the cash flow diagrams for each project.

b. Compute the benefit-cost ratio for each project.

С.Which project should the company select? Explain your answer. (Hint: Check AB/AC)


Answer

Verified

Related Questions

Question 45560

Construction Planning And Management

3) Calculate the total water usage in your residence on the basis of fixtures using the baseline levels outlined in WE Prerequisite: Indoor Water Use Reduction. Then, provide specifications (i.e. specific systems and their usage levels, with either product sheets provided or data referenced) to allow your residence to earn the LEED credits for WE Credit:Indoor Water Use Reduction, calculating the percent reduction and number of points earned.

Read More

Question 45559

Construction Planning And Management

2) Review and discuss the contribution of rainwater collection systems to site sustainability.Compare and contrast two providers and/or users (case studies) of these in this response.Discuss in terms of (a) ability to earn credits towards LEED certification under the Sustain-able Sites and Water Efficiency categories and (b) sustainability on the basis of the 3 E's.

Read More

Question 45558

Construction Planning And Management

1) For the project area pictured on the next page, do the following:
a) Determine, using the included scale, whether the site denoted by the star qualifies for LEED points under LT Credit: Surrounding Density and Diverse Uses. Assume that the properties are all mixed use, and the provided neighborhood data.
b) Determine how many points may be earned by the project site denoted by the star ifthere is a bus stop for an east-west route in front of property V and a bus stop for anorth-south route in front of property P. The stop at V handles 75 passengers perweekday and 70 passengers per weekend day, and the stop at P handles 80 passengersper weekday and 150 passengers per weekend day.

Read More

Question 45298

Construction Planning And Management

8. What is meant by the term fast tracking?

Read More

Question 45297

Construction Planning And Management

6. Identify the three primary project delivery methods and discuss how they differ contractually.

Read More

Question 45294

Construction Planning And Management

9. What two construction associations offer voluntary certification programs for construction managers?

Read More

Question 45293

Construction Planning And Management

8. What does LEED stand for, and what is its purpose?

Read More

Question 45290

Construction Planning And Management

5. What is the role of the owner on a construction project?

Read More

Question 45288

Construction Planning And Management

3. What are the five primary sectors of the construction industry?

Read More

Question 38805

Construction Planning And Management

For each of the following types of projects listed below, describe: (i) options for wherefunding for the project might come from; (ii) the construction delivery method that yousuggest should be used for the project; and (iii) why the delivery method should be usedfor the project. Provide your answer with respect to the owner's perspective. (30 points)
a. A company which owns many supermarket stores (e.g., Walmart), wants to build anew store. The store will be similar in size and design to other stores owned by the company.
b. A hospital owner needs to build a multi-story addition onto the hospital building to add new diagnostic equipment, surgery rooms, and labs. Ongoing hospital operations must continue during construction.
c. A small city wants to build new restroom facilities and a parking lot in a city park.

Read More

Submit query

Getting answers to your urgent problems is simple. Submit your query in the given box and get answers Instantly.

Submit a new Query

Please Add files or description to proceed

Success

Assignment is successfully created