1 2

-6564 -9000
3000 3000
200 300
4 6

Year Actual cf Actual cf

0 -6564 -9000
1 3000 3000
2 3000 3000
3 3000 3000
4 3200 3000
5 3000
6 3300
i 30.05% 24.68%
Aw ($972.45) ($972.42)
Pw $6,626 $6,626

1 2
Initial cost -12000
Aoc -45000
S.v 2000 4000
Ads price /ads -8 -20
No ads 4087 4087

Cash Flow Cash Flow

0 -12000
1 -77693.55676
2 -77693.55676
3 -75693.55676
AW(i) ($81,734) ($81,734)
VC ($32,694) ($81,734)
AW1-AW2 ($0.00)
MARR 6% Human rate/hr -25
Alternative Machin(M) Human (H)
Cost -80,000
Life, Year 10
AOC,$/year -2000
Cut rate/ hour 2500 2500
Cost/hour,$ -30 -150
Yards/year 268,113 268,113

AW of Machine ($12,869.44)
yardage cost (3,217) (16,086.80)
Total Cost ($16,087) (16,086.796)

Total cost M - Total Cost of H 0.00

 D B A C E
Cost 1,000.00 2,000.00 4,000.00 6,000.00 9,000.00
Pw of benefit 1,340.00 4,700.00 7,330.00 8,730.00 9,000.00

B/C 1.34 2.35 1.8325 1.455 1

Justification Yes Yes Yes Yes Yes

Incremental Analysis
B-D A-B C-A E-A
∆ Cost 1,000.00 2,000.00 2,000.00 5,000.00
∆ Benefit 3,360.00 2,630.00 1,400.00 1,670.00
∆ B/C 3.36 1.315 0.7 0.334
B A A A

rate 6%
C E A B D
Construction Cost 3 5 6 8 10
Annual benefit 125,000.00 350,000.00 350,000.00 420,000.00 400,000.00
1,000,000.00
Annual Cost $ 180,000.00 300,000.00 360,000.00 480,000.00 600,000.00
B/C 0.69 1.17 0.97 0.88 0.67

No Yes No No No
 Incremental Analysis

∆ Cost
∆ Benefit
∆ B/C
 F
10,000.00
9,500.00

0.95
No

Selected Alternative

A
A 6 350,000.00
B 8 420,000.00
C 3 125,000.00
D 10 400,000.00
E 5 350,000.00
F 11 700,000.00

F
11
700,000.00

660,000.00
1.06

Yes
 F-E Selected Alternative
360,000.00

E
350,000.00
0.97
E
A 4000 7330
B 2000 4700
C 6000 8730
D 1000 1340
E 9000 9000
F 10000 9500