Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 90 years, and the sponsoring agency's MARR is 12% per year. Annua 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. A Initial cost $60,000 Annual benefits $10,000 B-C ratio 1.39 B $140,000 $20,000 1.19 .……. Alternative Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative D Inc. B-C ratio 1.23 C $59,000 $9,500 1.34 D $54,000 $8,000 1.23 Is the alternative acceptable? Yes
Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 90 years, and the sponsoring agency's MARR is 12% per year. Annua 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. A Initial cost $60,000 Annual benefits $10,000 B-C ratio 1.39 B $140,000 $20,000 1.19 .……. Alternative Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative D Inc. B-C ratio 1.23 C $59,000 $9,500 1.34 D $54,000 $8,000 1.23 Is the alternative acceptable? Yes
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 90 years, and the sponsoring agency's MARR is 12% 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.
A
Initial cost
$60,000
Annual benefits $10,000
B-C ratio
1.39
Alternative
B
$140,000
$20,000
1.19
Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.)
Alternative
D
Inc. B-C ratio
1.23
C
$59,000
$9,500
1.34
D
$54,000
$8,000
1.23
Is the alternative acceptable?
Yes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe290f887-b5df-40df-82d0-665473d14543%2F3b71186d-a092-44df-8a96-0f5ac7b4f09b%2Fivklw08_processed.png&w=3840&q=75)
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 90 years, and the sponsoring agency's MARR is 12% 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.
A
Initial cost
$60,000
Annual benefits $10,000
B-C ratio
1.39
Alternative
B
$140,000
$20,000
1.19
Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.)
Alternative
D
Inc. B-C ratio
1.23
C
$59,000
$9,500
1.34
D
$54,000
$8,000
1.23
Is the alternative acceptable?
Yes
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