**Project Evaluation for a New Jogging Track**Four mutually exclusive projects are being evaluated for the construction of a new 2-mile jogging track. The expected lifespan of the track is 85 years, and the sponsoring agency's Minimum Attractive Rate of Return (MARR) is 10% per annum. The estimated annual benefits for the public, provided by an advisory committee, are outlined below. The Benefit-Cost (B-C) ratio method is used incrementally to determine the best jogging track alternative.| Alternative | Initial Cost | Annual Benefits | B-C Ratio ||-------------|--------------|-----------------|-----------|| A | $60,000 | $11,000 | 1.83 || B | $140,000 | $21,000 | 1.50 || C | $56,000 | $8,500 | 1.52 || D | $51,000 | $7,000 | 1.37 |---**Incremental B-C Analysis**Complete the incremental B-C analysis utilizing the table below, ensuring to round results to two decimal places:| Alternative | Incremental B-C Ratio | Is the Alternative Acceptable? ||-------------|------------------------|--------------------------------|| D | 1.37 | Yes |The table confirms that Alternative D has an incremental B-C ratio of 1.37, making it an acceptable choice under the given conditions.

Benefit-Cost (B-C) Analysis: Benefit-cost analysis is a financial evaluation method to assess the…

Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 85 years, and the sponsoring agency's MARR is 10% 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. Initial cost Annual benefits B-C ratio A $60,000 $11,000 1.83 Alternative D Alternative B $140,000 $21,000 1.50 C $56,000 $8,500 1.52 $51,000 $7,000 1.37 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio 1.37 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 85 years, and the sponsoring agency's MARR is 10% 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. Initial cost Annual benefits B-C ratio A $60,000 $11,000 1.83 Alternative D Alternative B $140,000 $21,000 1.50 C $56,000 $8,500 1.52 $51,000 $7,000 1.37 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio 1.37 Is the alternative acceptable? Yes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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