A new dam project will require Rs. 48,000 a year in maintenance costs after it is complete. These maintenance costs will continue forever. Assume that the funding can be set aside in an account that earns 5% interest per year. What is the lump sum to be set aside now in order to cover the Rs. 48,000 in annual maintenance costs?

A project has an initial cost of Rs. 250 million and annual benefits of Rs. 45 million. The payback period of this project is approximately

Consider the three mutually exclusive alternatives A, B and C mentioned below.
Initial Cost : Rs. 350(A), Rs. 125(B), Rs. 200(C)
Uniform Annual Benefit : Rs. 90(A), Rs. 27.7(B), Rs. 80(C)
Assume each alternative has a 5-year useful life and no salvage value. Based on a 5% interest rate and the benefit-cost ratio, which alternative should be selected?

A tire manufacturing plant is considering purchasing Rs. 14,000 worth of new tools for use on the production line. It is estimated that the new tools will reduce required labor by Rs. 3,000 each year. The payback period for the new tools is approximately

Two pieces of equipment are being considered. Machine A costs Rs. 1,000 and has a useful life of 8 years. At the end of 8 years it can be salvaged for Rs. 175. Machine B costs Rs. 2,000 and also has a useful life of 8 years and can be salvaged for Rs. 500 at the end of its life. If the interest rate is 8% and Machine A has a net annual benefit of Rs. 225, what must the net annual benefit of Machine B be for the two machines to be equally desirable?

Two projects, A and B, are being considered
Initial Cost : Rs. 300(A), Rs. 500(B)
Uniform Annual Benefit: Rs. 125(A), Rs. 150(B)
Useful Life : 15 years(A), 15 years(B)
Given a 10% interest rate, the benefit-cost ratio of the difference between project A and project B is approximately

A piece of equipment is purchased for Rs. 15,000 and yields a Rs. 1,500 annual profit. If the equipment is sold after 5 years, the minimum selling price (future worth) to break even, assuming a 5% interest rate is approximately

Project A has an initial cost of Rs. 50,000 with annual benefits of Rs. 4,500. Project B has an initial cost of Rs. 75,000 with annual benefits of Rs. 7,200. Based upon payback period analysis, which project is more desirable?

Two options A and B for engineering projects has the following cash flows.
Year : 0 1 2 3 4
Option A : −2,000, +1,100, +1,100, +1,100, +1,100
Option B : −2,400, +1,250, +1,250, +1,250, +1,250
At an 8% interest rate, which project should be selected based upon future worth analysis?

A federal project has a cost of Rs. 5,000,000 with annual operating costs of Rs. 850,000 per year. The expected annual gross income is Rs. 1,700,000 per year for the life of the project which is expected to last 10 years. Using an 8% interest rate, the benefit-cost ratio is approximately