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
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Question
Five mutually exclusive alternatives are being considered for providing a sewage-treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows (shown): Which plan, if any, should be adopted if the Sewage Authority wishes to invest if, and only if, the B–C ratio is at least 1.0.?
Transcribed Image Text:Annual Equivalent (in thousands)
Alternative
Cost
Benefits
A
S1,050
$1,110
В
900
810
C
1,230
1,390
D
1,350
1,500
E
990
1,140
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