Determine which of the following alternatives is the most efficient and which is the most profitable using the incremental Benefit/Cost ratio method. Rate is 5% per year. Life years Benefits $/yr Salvage $ 100,000 180,000 300,000 350,000 Construction $ 300,000 320,000 380,000 A 1,000,000 1,800,000 3,000,000 9 17 C 25 3,500,000 340,000 40
Determine which of the following alternatives is the most efficient and which is the most profitable using the incremental Benefit/Cost ratio method. Rate is 5% per year. Life years Benefits $/yr Salvage $ 100,000 180,000 300,000 350,000 Construction $ 300,000 320,000 380,000 A 1,000,000 1,800,000 3,000,000 9 17 C 25 3,500,000 340,000 40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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