**Problem Description:**Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 20 years, and the sponsoring agency's Minimum Attractive Rate of Return (MARR) is 9% per year. Annual benefits to the public have been estimated for all project alternatives and are shown below. Use the Benefit-Cost (B-C) method (incrementally) to select the best jogging track.**Project Alternatives:**| Alternative | Initial Cost | Annual Benefits | B-C Ratio ||-------------|--------------|-----------------|-----------|| A | $50,000 | $8,000 | 1.78 || B | $145,000 | $21,000 | 1.61 || C | $55,000 | $9,000 | 1.82 || D | $64,000 | $10,500 | 1.82 |**Analysis Task:**Perform the incremental B-C Analysis. Fill in the table below. (Round to two decimal places.)**Incremental B-C Analysis:**| Alternative | Inc. B-C Ratio | Is the Alternative Acceptable? ||-------------|----------------|--------------------------------|| A | 1.78 | Yes |The incremental B-C ratios will guide the decision for selecting the most economically beneficial project. Here, Alternative A with a B-C ratio of 1.78 is considered acceptable. Further incremental analysis should be conducted to compare other alternatives.

Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) A Initial cost $50,000 Annual benefits $8,000 B-C ratio 1.78 Alternative Alternative A B $145,000 $21,000 1.61 C $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? 1.78 Yes

Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) A Initial cost $50,000 Annual benefits $8,000 B-C ratio 1.78 Alternative Alternative A B $145,000 $21,000 1.61 C $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? 1.78 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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