1 The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period. Extra Cameras (EC) First cost, $ 38,000 00:47:52 Annual M&O, $ per year 49,000 Benefits, $ per year 104,000 Disbenefits, $ per year 16,000 The B/C ratio is 1.88 Select alternative (extra cameras New Sensors (NS) 87,000 84,000 87,000

1 The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period. Extra Cameras (EC) First cost, $ 38,000 00:47:52 Annual M&O, $ per year 49,000 Benefits, $ per year 104,000 Disbenefits, $ per year 16,000 The B/C ratio is 1.88 Select alternative (extra cameras New Sensors (NS) 87,000 84,000 87,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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1
The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which
one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period.
Extra Cameras (EC)
First cost, $
38,000
00:47:52
Annual M&O, $ per year
49,000
Benefits, $ per year
104,000
Disbenefits, $ per year
16,000
The B/C ratio is 1.88
Select alternative (extra cameras
New Sensors (NS)
87,000
84,000
87,000

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