Using the benefits and costs data below for Project 1, 2 and 3, conduct a Conventional Incremental B/C Ratio Analysis for Project 1 and Project 2. With a given annual interest rate of 8%, select the correct Incremental B/C ratio. All Projects have Infinite Life Project 1 Project 2 Project 3 First cost -1,000,000 -1,500,000 -2,500,000 Annual Cost -60,000 -45,000 -30,000 Annual Benefits 200,000 250,000 360,000 Annual dis-benefits -50,000 -60,000 -75,000
Using the benefits and costs data below for Project 1, 2 and 3, conduct a Conventional Incremental B/C Ratio Analysis for Project 1 and Project 2. With a given annual interest rate of 8%, select the correct Incremental B/C ratio. All Projects have Infinite Life Project 1 Project 2 Project 3 First cost -1,000,000 -1,500,000 -2,500,000 Annual Cost -60,000 -45,000 -30,000 Annual Benefits 200,000 250,000 360,000 Annual dis-benefits -50,000 -60,000 -75,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Using the data from Problem 7 above, conduct a Conventional Incremental B/C Ratio Analysis for project 2 and 3. With a given annual interest rate of 8%, select the correct Incremental B/C ratio. The data from problem 7 you can find it in the first picture, please answer this asap.
Transcribed Image Text:Using the benefits and costs data below for Project 1, 2 and 3, conduct a Conventional Incremental
B/C Ratio Analysis for Project 1 and Project 2. With a given annual interest rate of 8%, select the
correct Incremental B/C ratio.
All Projects have
Infinite Life
Project 1
Project 2
Project 3
First cost
-1,000,000
-1,500,000
-2,500,000
Annual
Cost
-60,000
-45,000
-30,000
Annual
Benefits
200,000
250,000
360,000
Annual
dis-benefits
-50,000
-60,000
-75,000
Transcribed Image Text:Using the data from Problem 7 above, conduct a Conventional Incremental B/C Ratio Analysis for
project 2 and 3. With a given annual interest rate of 8%, select the correct Incremental B/C ratio.
1.32
0.78
1.24
O 1.46
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