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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": {}
}
]
}
|
