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Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 85 years, and the sponsoring agency's MARR is 10% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A C $150,000 $51,000 $56,000 $9,500 $64,000 $10,500 Initial cost Annual benefits $20,000 $8,000 B-C ratio 1.33 1.57 1.70 1.64 ..... Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? B 1.57 Yes

Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 85 years, and the sponsoring agency's MARR is 10% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A C $150,000 $51,000 $56,000 $9,500 $64,000 $10,500 Initial cost Annual benefits $20,000 $8,000 B-C ratio 1.33 1.57 1.70 1.64 ..... Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? B 1.57 Yes

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 40P
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Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 85 years, and the sponsoring agency's MARR is 10% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A C D $150,000 $20,000 $51,000 $56,000 $9,500 $64,000 $10,500 Initial cost Annual benefits $8,000 B-C ratio 1.33 1.57 1.70 1.64 ..... Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? B 1.57 Yes
Transcribed Image Text:Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 85 years, and the sponsoring agency's MARR is 10% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A C D $150,000 $20,000 $51,000 $56,000 $9,500 $64,000 $10,500 Initial cost Annual benefits $8,000 B-C ratio 1.33 1.57 1.70 1.64 ..... Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? B 1.57 Yes
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