Calculate the incremental Benefit-Cost ratio of the following alternatives: A B Costs ($/year) 21,000 24,000 Benefits ($/year) 17,000 22,000 Disbenefits ($/year) Life (years) 5,000 7,000 5 5 Given: i = 10% and B/C = (B-D)/C O a. 0.57 O b. 1.34 O c. 1.00 O d. 0.63 Time left 1:26:22 Hide An engineering firm purchases a new industrial drill press for $10,000. it will be functional and reliable for 10 years with no salvage value. The book value after 3 years is: O a. $ 5000 O b. $ 6000 O c. $ 7000 O d. $ 8000
Calculate the incremental Benefit-Cost ratio of the following alternatives: A B Costs ($/year) 21,000 24,000 Benefits ($/year) 17,000 22,000 Disbenefits ($/year) Life (years) 5,000 7,000 5 5 Given: i = 10% and B/C = (B-D)/C O a. 0.57 O b. 1.34 O c. 1.00 O d. 0.63 Time left 1:26:22 Hide An engineering firm purchases a new industrial drill press for $10,000. it will be functional and reliable for 10 years with no salvage value. The book value after 3 years is: O a. $ 5000 O b. $ 6000 O c. $ 7000 O d. $ 8000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Calculate the incremental Benefit-Cost ratio of the following alternatives:
A
B
Costs ($/year)
21,000
24,000
Benefits ($/year)
17,000
22,000
Disbenefits ($/year)
Life (years)
5,000
7,000
5
5
Given: i = 10% and B/C = (B-D)/C
O a. 0.57
O b. 1.34
O c. 1.00
O d. 0.63
Time left 1:26:22 Hide
An engineering firm purchases a new industrial drill press for $10,000. it will be functional and reliable for 10 years with no salvage value. The book
value after 3 years is:
O a. $ 5000
O b. $ 6000
O c. $ 7000
O d. $ 8000
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