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authorThomas Stephen Lee2015-09-04 22:04:10 +0530
committerThomas Stephen Lee2015-09-04 22:04:10 +0530
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-{
- "metadata": {
- "name": "",
- "signature": "sha256:28b0077be1a0d41b0cc471c0e34331f1edde6c138991b53632e2c3b3cb0de57c"
- },
- "nbformat": 3,
- "nbformat_minor": 0,
- "worksheets": [
- {
- "cells": [
- {
- "cell_type": "heading",
- "level": 1,
- "metadata": {},
- "source": [
- "Evaluation of Public Alternatives"
- ]
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 10.1 Page 138"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initiation of variable\n",
- "Ii=4000000.0;#in Rs.\n",
- "AM=150000.0;#in Rs.\n",
- "AFS=600000.0;#in Rs.\n",
- "Einc=50000.0;#in Rs.\n",
- "i=12.0;#in % per annum\n",
- "n=15.0;#in years\n",
- "\n",
- "#calculation\n",
- "Cp=AM*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs\n",
- "TPW=Ii+Cp;#in RS\n",
- "\n",
- "#result\n",
- "print \"Total present worth of costs in RS. : \",round(TPW,3);\n",
- "\n",
- "#Total present worth of fuel savings:\n",
- "AI=600000.0;#in Rs.\n",
- "G=50000.0;#in Rs.\n",
- "i=12.0;#in % per annum\n",
- "n=15.0;#in years\n",
- "\n",
- "#calculation\n",
- "A=AI+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100);#in RS\n",
- "Bp=A*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs.\n",
- "BCratio=Bp/(Ii+Cp);#unitless\n",
- "\n",
- "#result\n",
- "print \"Present worth of fuel savings in Rs. : \",round(Bp,3);\n",
- "print \"BCratio : \",round(BCratio,3);\n",
- "print\"Since BC ratio is more than 1, the construction of the bridge across the river is justified.\";\n",
- "print\"answers are slightly different from the book due to approximation\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "Total present worth of costs in RS. : 5021629.673\n",
- "Present worth of fuel savings in Rs. : 5782527.265\n",
- "BCratio : 1.152\n",
- "Since BC ratio is more than 1, the construction of the bridge across the river is justified.\n",
- "answers are slightly different from the book due to approximation\n"
- ]
- }
- ],
- "prompt_number": 1
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 10.2 Page 139"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initiation of variable\n",
- "Ic=80000000.0;#in Rs.\n",
- "Aps=6000000.0;#in Rs.\n",
- "Afs=3000000.0;#in Rs.\n",
- "Aib=5000000.0;#in Rs.\n",
- "Arb=2000000.0;#in Rs.\n",
- "Amc=3000000.0;#in Rs.\n",
- "i=12.0;#in % per annum\n",
- "n=50.0;#in years\n",
- "\n",
- "#calculation\n",
- "TAB=Afs+Aib+Arb;#in Rs.\n",
- "PW_B=TAB*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs\n",
- "\n",
- "#result\n",
- "print \"Total present worth of benefits in RS. : \",round(PW_B,3);\n",
- "\n",
- "#Present worth of costs:\n",
- "PW_C=Ic+Amc*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n)-Aps*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in RS\n",
- "BCratio=PW_B/PW_C;#unitless\n",
- "\n",
- "#result\n",
- "print \"Present worth of costs in Rs. : \",round(PW_C,3);\n",
- "print \"BCratio : \",round(BCratio,3);\n",
- "print \"Since BC ratio is more than 1, the state govt. can implement the hydroelectric project.\";"
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "Total present worth of benefits in RS. : 83044984.884\n",
- "Present worth of costs in Rs. : 55086504.535\n",
- "BCratio : 1.508\n",
- "Since BC ratio is more than 1, the state govt. can implement the hydroelectric project.\n"
- ]
- }
- ],
- "prompt_number": 3
- },
- {
- "cell_type": "heading",
- "level": 3,
- "metadata": {},
- "source": [
- "Example 10.3 Page 140"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initiation of variable\n",
- "#alternative 1\n",
- "P=3000000.0;#in Rs.\n",
- "B=900000.0;#in Rs.\n",
- "i=10.0;#in % per annum\n",
- "n=5.0;#in years\n",
- "\n",
- "#calculation\n",
- "AE1=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
- "BCratio=B/AE1;#unitless\n",
- "\n",
- "#result\n",
- "print \"Annual equivalent of initial cost in Rs. : \",round(AE1,3);\n",
- "print \"BCratio : \",round(BCratio,3);\n",
- "\n",
- "#Alternative A2 : \n",
- "P=6000000.0;#in Rs.\n",
- "B=1500000.0;#in Rs.\n",
- "i=10.0;#in % per annum\n",
- "n=7.0;#in years\n",
- "\n",
- "#calculation\n",
- "AE2=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
- "BCratio=B/AE2;#unitless\n",
- "\n",
- "#result\n",
- "print \"Annual equivalent of initial cost in Rs. : \",round(AE2,3);\n",
- "print \"BCratio : \",round(BCratio,3);\n",
- "print \"The benefit cost ratio of alternative 2 is more than that of alternative A1. Hence, alternative A2 is to be selected. The comparisoon is made on a 35 years period which is the minimum common multiple of the lives of alternative 1 and 2\";"
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "Annual equivalent of initial cost in Rs. : 791392.442\n",
- "BCratio : 1.137\n",
- "Annual equivalent of initial cost in Rs. : 1232432.998\n",
- "BCratio : 1.217\n",
- "The benefit cost ratio of alternative 2 is more than that of alternative A1. Hence, alternative A2 is to be selected. The comparisoon is made on a 35 years period which is the minimum common multiple of the lives of alternative 1 and 2\n"
- ]
- }
- ],
- "prompt_number": 4
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 10.4 Page 141"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initiation of variable\n",
- "#cost of the state\n",
- "n=20.0;#in years\n",
- "P=2500000000.0;#in Rs.\n",
- "Agt=10000000.0;#in Rs.\n",
- "Ai=1000000.0;#in Rs.\n",
- "Com=48000.0;#in Rs./year/employee\n",
- "C1=Com*300;#in Rs.\n",
- "i=10.0;#in % per annum\n",
- "\n",
- "#calculation\n",
- "C2=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
- "CA=C2+C1;#in Rs\n",
- "\n",
- "#result\n",
- "print \"Annual equivalent initial cost in Rs. : \",round(C2,3);\n",
- "print \"Total Annual equivalent cost of the project in Rs. : \",round(CA,3);\n",
- "\n",
- "#Benefit to the state : \n",
- "W=30000000.0;#in Rs.\n",
- "A1=W*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs.\n",
- "Agpy=10000000.0;#in ton/year\n",
- "A2=Agpy*(30-10);#in Rs.\n",
- "AvgAI=1000000.0;#in tons Km.\n",
- "G=20000000.0;#in Rs.\n",
- "\n",
- "#calculation\n",
- "A3=A2+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100) ;#in Rs.\n",
- "BA=A1+A3;#in Rs\n",
- "BCratio=BA/CA;#unitless\n",
- "print \"Annual equivalent average of transport cost saving in Rs. : \",round(A3,3);\n",
- "print \"Total annual equivalent benefits to the state : \",round(BA,3);\n",
- "print \"BCratio : \",round(BCratio,3);\n",
- "print \"The benefit cost ratio is more than 1,the project is justified.\";\n",
- "print \"the slight error in the answer of the book is due to approximation error\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "Annual equivalent initial cost in Rs. : 293649061.931\n",
- "Total Annual equivalent cost of the project in Rs. : 308049061.931\n",
- "Annual equivalent average of transport cost saving in Rs. : 330161500.91\n",
- "Total annual equivalent benefits to the state : 333685289.653\n",
- "BCratio : 1.083\n",
- "The benefit cost ratio is more than 1,the project is justified.\n",
- "the slight error in the answer of the book is due to approximation error\n"
- ]
- }
- ],
- "prompt_number": 1
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 10.5 Page 143"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initiation of variable\n",
- "#project A\n",
- "i=9.0;#% per annum\n",
- "n=50.0;#in years\n",
- "P_A=150000000.0;#in RS.\n",
- "Fcs_A=2500000;#in Rs.\n",
- "Ib_A=3500000;#in Rs.\n",
- "Rb_A=1000000;#in RS.\n",
- "OMC_A=2000000.0;#in Rs.\n",
- "Psy_A=10000000.0;#in Rs.\n",
- "\n",
- "#calculation\n",
- "AE_A=P_A*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
- "Cpy_A=AE_A+OMC_A-Psy_A;#in Rs.\n",
- "Bpy_A=Fcs_A+Ib_A+Rb_A;#in Rs.\n",
- "BCratio_A=Bpy_A/Cpy_A;#unitless\n",
- "\n",
- "#result\n",
- "print \"Costs/year : \",round(Cpy_A,3);\n",
- "print \"Benefits/year : \",round(Bpy_A,3);\n",
- "print \"BC Ratio of project A : \",round(BCratio_A,3)\n",
- "\n",
- "\n",
- "#Project B : \n",
- "P_B=250000000.0;#in Rs.\n",
- "\n",
- "OMC_B=2500000.0;#in Rs.\n",
- "Psy_B=12000000.0;#in Rs.\n",
- "Fcs_B=3500000.0;#in Rs.\n",
- "Ib_B=4500000.0;#in Rs.\n",
- "Rb_B=2000000.0;#in RS.\n",
- "AE_B=P_B*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
- "Cpy_B=AE_B+OMC_B-Psy_B;#in Rs.\n",
- "Bpy_B=Fcs_B+Ib_B+Rb_B;#in Rs.\n",
- "BCratio_B=Bpy_B/Cpy_B;#unitless\n",
- "\n",
- "#result\n",
- "print \"Costs/year : \",round(Cpy_B,3);\n",
- "print \"Benefits/year : \",round(Bpy_B,3);\n",
- "print \"BC Ratio of project B : \",round(BCratio_B,3)\n",
- "\n",
- "#Project C : \n",
- "P_C=400000000.0;#in Rs.\n",
- "OMC_C=3500000.0;#in Rs.\n",
- "Psy_C=18000000.0;#in Rs.\n",
- "Fcs_C=5000000.0;#in Rs.\n",
- "Ib_C=6000000.0;#in Rs.\n",
- "Rb_C=3500000.0;#in RS.\n",
- "AE_C=P_C*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
- "Bpy_C=Fcs_C+Ib_C+Rb_C;#in Rs.\n",
- "Cpy_C=AE_C+OMC_C-Psy_C;#in Rs.\n",
- "BCratio_C=Bpy_C/Cpy_C;#unitless\n",
- "\n",
- "#result\n",
- "print \"Costs/year : \",round(Cpy_C,3);\n",
- "print \"Benefits/year : \",round(Bpy_C,3);\n",
- "print \"BC Ratio of project C : \",round(BCratio_C,3)\n",
- "print\"From the computations it is clear that only alternative A is eligible because other two alternatives have BC ratio less than one.\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "Costs/year : 5684030.212\n",
- "Benefits/year : 7000000.0\n",
- "BC Ratio of project A : 1.232\n",
- "Costs/year : 13306717.021\n",
- "Benefits/year : 10000000.0\n",
- "BC Ratio of project B : 0.752\n",
- "Costs/year : 21990747.233\n",
- "Benefits/year : 14500000.0\n",
- "BC Ratio of project C : 0.659\n",
- "From the computations it is clear that only alternative A is eligible because other two alternatives have BC ratio less than one.\n"
- ]
- }
- ],
- "prompt_number": 8
- }
- ],
- "metadata": {}
- }
- ]
-} \ No newline at end of file