Chapter 18 Self-Study Questions

1.Customers get faster access to their bills and other relevant information.
3.The local electric utility company would pay. The costs would be for development along with ongoing operation and maintenance costs. Utility reduces help staff, cutting operating costs.
4.The present-worth of the net savings is $34,500 (P/A,13,5) = $34,500 (3.5172) = $121,343. The cost is $115,000 so the benefit-cost ratio is 1.055.
9.Start by calculating the PW(12%) for each system using Initial cost – (P/A,12,10) * Savings.

(P/A,12,10) is 5.6502

A: 1200 – (100 * 5.6502) = 635

B: 2000 – (140 * 5.6502) = 1209

C: 2600 – (230 * 5.6502) = 1300

D: 4000 – (340 * 5.6502) = 2079

E: 5100 – (500 * 5.6502) = 2275

SystemPW(i) of Net Investment in Millions ...

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