Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 75 years, and the sponsoring agency's MARR is 9% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A. B $61,000 $10,500 Initial cost $56,000 $155,000 $53,000 Annual benefits $8,500 $20,000 $7,000 B-C ratio 1.68 1.91 1.43 1.47 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? D 1.47 Yes
Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 75 years, and the sponsoring agency's MARR is 9% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A. B $61,000 $10,500 Initial cost $56,000 $155,000 $53,000 Annual benefits $8,500 $20,000 $7,000 B-C ratio 1.68 1.91 1.43 1.47 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? D 1.47 Yes
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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Transcribed Image Text:Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 75 years, and the sponsoring agency's MARR is 9% per year. Annual benefits to the public have been
estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track.
Alternative
A
В
Initial cost
$56.000
$61,000
$10,500
$155,000
$20,000
$53,000
Annual benefits
S8,500
$7,000
B-C ratio
1.68
1.91
1.43
1.47
Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.)
Alternative
Inc. B-C ratio
Is the alternative acceptable?
D
1.47
Yes
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