Countermeasure Annual Benefit Anhoul Cost B/C Ratio Program 1 Program 2 Program 3 Program 4 $14,350 $1,430 10.03 $11,350 $1,835 6.19 $35,000 $19,500 1.79 $42,000 $24,000 1.75

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
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A local government is considering four possible countermeasures to reduce
crimes in the municipal park. Since each option has a different program
length of duration, all benefits and costs are expressed in terms of equivalent
annual values. Because of a limited budget, only one countermeasure will be
implemented. Which countermeasure would you recommend based on the
B/C analysis?

Countermeasure
Annual Benefit
Anhoul Cost B/C Ratio
Program 1
Program 2
Program 3
Program 4
$14,350
$1,430
10.03
$11,350
$1,835
6.19
$35,000
$19,500
1.79
$42,000
$24,000
1.75
Transcribed Image Text:Countermeasure Annual Benefit Anhoul Cost B/C Ratio Program 1 Program 2 Program 3 Program 4 $14,350 $1,430 10.03 $11,350 $1,835 6.19 $35,000 $19,500 1.79 $42,000 $24,000 1.75
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