he city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 11% per year. What is the conventional B-C ratio for Truck X? The appropriate financial data are as follows: O Choose the correct answer below. Capital investment Maintenance cost per year Useful life Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. OA. The conventional B-C ratio for Truck X is 1.78. OB. The conventional B-C ratio for Truck X is 1.32. OC. The conventional B-C ratio for Truck X is 2.30. OD. The conventional B-C ratio for Truck X is 1.51. OE. The conventional B-C ratio for Truck X is 0.66. Reduction in fire damage per year Truck X $45,000 $5,000 7 years $22,000 Truck Y $60,000 $5,500 5 years $24.000
he city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 11% per year. What is the conventional B-C ratio for Truck X? The appropriate financial data are as follows: O Choose the correct answer below. Capital investment Maintenance cost per year Useful life Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. OA. The conventional B-C ratio for Truck X is 1.78. OB. The conventional B-C ratio for Truck X is 1.32. OC. The conventional B-C ratio for Truck X is 2.30. OD. The conventional B-C ratio for Truck X is 1.51. OE. The conventional B-C ratio for Truck X is 0.66. Reduction in fire damage per year Truck X $45,000 $5,000 7 years $22,000 Truck Y $60,000 $5,500 5 years $24.000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:N
1
2
@ N
3
4
5
6
7
8
9
10
Single Payment
Compound
Amount Present
Factor Worth Factor
To Find F
Given P
FIP
Discrete Compounding; i = 11%
1.1100
1.2321
1.3676
1.5181
1.6851
1.8704
2.0762
2.3045
2.5580
2.8394
To Find P
Given F
PIF
0.9009
0.8116
0.7312
0.6587
0.5935
0.5346
0.4817
0.4339
0.3909
0.3522
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.1100
3.3421
4.7097
6.2278
7.9129
9.7833
11.8594
14.1640
16.7220
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.9009
1.7125
2.4437
3.1024
3.6959
4.2305
4.7122
5.1461
5.5370
5.8892
Sinking
Fund
Factor
To Find A
Given F
AIF
1.0000
0.4739
0.2992
0.2123
0.1606
0.1264
0.1022
0.0843
0.0706
0.0598
Capital
Recovery
Factor
To Find A
Given P
AIP
1.1100
0.5839
0.4092
0.3223
0.2706
0.2364
0.2122
0.1943
0.1806
0.1698
Transcribed Image Text:The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 11% per year. What is the conventional B-C ratio for Truck X? The appropriate financial data are as follows:
Q
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year.
Choose the correct answer below.
Capital investment
Maintenance cost per year
Useful life
Reduction in fire damage per year
O A. The conventional B-C ratio for Truck X is 1.78.
OB. The conventional B-C ratio for Truck X is 1.32.
O C. The conventional B-C ratio for Truck X is 2.30.
O D. The conventional B-C ratio for Truck X is 1.51.
O E. The conventional B-C ratio for Truck X is 0.66.
C
Truck X
$45,000
$5,000
7 years
$22,000
Truck Y
$60,000
$5,500
5 years
$24,000
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