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 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 Initial cost Annual benefits B-C ratio The best jogging track is alternative Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative A с A $52,000 $7,500 1.60 B D B $62,000 $10,500 1.88 Inc. B-C ratio 1.60 age C $57,000 $9,000 1.75 D $150,000 $19,000 1.41 Is the alternative acceptable? Yes Yes Yes Yes D
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 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 Initial cost Annual benefits B-C ratio The best jogging track is alternative Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative A с A $52,000 $7,500 1.60 B D B $62,000 $10,500 1.88 Inc. B-C ratio 1.60 age C $57,000 $9,000 1.75 D $150,000 $19,000 1.41 Is the alternative acceptable? Yes Yes Yes Yes D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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