A town is considering adding on to the concession stand at the public ball park. They have narrowed their options down to three, along with the option to do nothing. Option A has a cost of $600 and a uniform annual benefits of $158.30. Option B has a cost of $500 and a uniform annual benefits of $138.70. Option C has a cost of $200 and a uniform annual benefits of $58.30.Each of the options has a 5 year useful life. The SDR for this project is 10%. Which option should they select? * O A О в O C None of them
A town is considering adding on to the concession stand at the public ball park. They have narrowed their options down to three, along with the option to do nothing. Option A has a cost of $600 and a uniform annual benefits of $158.30. Option B has a cost of $500 and a uniform annual benefits of $138.70. Option C has a cost of $200 and a uniform annual benefits of $58.30.Each of the options has a 5 year useful life. The SDR for this project is 10%. Which option should they select? * O A О в O C None of them
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A town is considering adding on to the concession stand at the public ball
park. They have narrowed their options down to three, along with the
option to do nothing. Option A has a cost of $600 and a uniform annual
benefits of $158.30. Option B has a cost of $500 and a uniform annual
benefits of $138.70. Option C has a cost of $200 and a uniform annual
benefits of $58.30.Each of the options has a 5 year useful life. The SDR for
this project is 10%. Which option should they select? *
A
B
None of them
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