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nas the largest should be chosen? emental B-C fatio (based 1 dilfferences between altermatives)? costs 13,000 26,000 PW of benefits has the greatest B-C ratio, which is 4.33. (Round to two decimal places.) has the largest incremental B-C, which is 4.67. (Round to two decimal places.)

nas the largest should be chosen? emental B-C fatio (based 1 dilfferences between altermatives)? costs 13,000 26,000 PW of benefits has the greatest B-C ratio, which is 4.33. (Round to two decimal places.) has the largest incremental B-C, which is 4.67. (Round to two decimal places.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. a. Which system has the greatest B-C ratio? b. Which system has the largest incremental B-C ratio (based on differences between alternatives)? c. Which system should be chosen? System 1 2 3 PW of $3,000 $14,000 $11,000 $3,000 $1,500 costs PW of 13,000 26,000 16,000 6,000 6,000 benefits a. System 1 has the greatest B-C ratio, which is 4.33. (Round to two decimal places.) b. System 1 has the largest incremental B-C, which is 4.67. (Round to two decimal places.) c. System 2 should be chosen.
Transcribed Image Text:A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. a. Which system has the greatest B-C ratio? b. Which system has the largest incremental B-C ratio (based on differences between alternatives)? c. Which system should be chosen? System 1 2 3 PW of $3,000 $14,000 $11,000 $3,000 $1,500 costs PW of 13,000 26,000 16,000 6,000 6,000 benefits a. System 1 has the greatest B-C ratio, which is 4.33. (Round to two decimal places.) b. System 1 has the largest incremental B-C, which is 4.67. (Round to two decimal places.) c. System 2 should be chosen.
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