A new waste truck is needed for a portion of the city. Compare the asset with the Benefit-Cost method? The interest rate is 8% Present value = $55,000 Annual cost = $11,500 Annual savings = $28,500 Salvage value = $6,800 Life in years = 10 O a. B/C = 1.88 b. B/C = 0.72 O C. B/C = 1.47 d. B/C = 1.40
A new waste truck is needed for a portion of the city. Compare the asset with the Benefit-Cost method? The interest rate is 8% Present value = $55,000 Annual cost = $11,500 Annual savings = $28,500 Salvage value = $6,800 Life in years = 10 O a. B/C = 1.88 b. B/C = 0.72 O C. B/C = 1.47 d. B/C = 1.40
Chapter1: Making Economics Decisions
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![Question 3
A new waste truck is needed for a portion of the city. Compare the asset with the Benefit-Cost method? The interest rate is 8%
Present value = $55,000
Annual cost = $11,500
Annual savings = $28,500
Salvage value = $6,800
Life in years = 10
O a. B/C = 1.88
Ob. B/C = 0.72
O c. B/C = 1.47
O d. B/C
1.40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facf4f1ba-3b61-4318-ad6b-837bfdf90586%2F6c17d945-2891-43da-afaa-3bcacc70b8c8%2Fhdxfqr_processed.png&w=3840&q=75)
Transcribed Image Text:Question 3
A new waste truck is needed for a portion of the city. Compare the asset with the Benefit-Cost method? The interest rate is 8%
Present value = $55,000
Annual cost = $11,500
Annual savings = $28,500
Salvage value = $6,800
Life in years = 10
O a. B/C = 1.88
Ob. B/C = 0.72
O c. B/C = 1.47
O d. B/C
1.40
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