Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency’s MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown attached. Use the B–C method (incrementally) to select the best jogging track.
![Alternative
A
В
C
D
Initial cost $62,000 $52,000 S150,000 $55,000
$9,000
Annual
$10,000 S8,000 $20,000
benefits
В С ratio
1.34
1.28
1.11
1.36](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13c0d933-c733-429d-866f-6a53d10197a2%2F7c0c79d3-fec5-4dd0-ab66-9378d2a893f1%2Fe9o8va_processed.png&w=3840&q=75)
Transcribed Image Text:Alternative
A
В
C
D
Initial cost $62,000 $52,000 S150,000 $55,000
$9,000
Annual
$10,000 S8,000 $20,000
benefits
В С ratio
1.34
1.28
1.11
1.36
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