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

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
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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
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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