Problem 10.12. A town in northern Colorado is planning on investing in a water purification system. Three mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (salvage values are negligible). If the town’s MARR is 10% per year, use the B–C ratio method to determine which system is best.
Problem 10.12. A town in northern Colorado is planning on investing in a water purification system. Three mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (salvage values are negligible). If the town’s MARR is 10% per year, use the B–C ratio method to determine which system is best.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Problem 10.12. A town in northern Colorado is planning on investing in a water purification system. Three mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (salvage values are negligible). If the town’s MARR is 10% per year, use the B–C ratio method to determine which system is best.
Transcribed Image Text:ΕΟΥ
Ο
1
2
3
4
System
A
B
-$160,000 - $245,000
80,000
120,000
70,000
100,000
60,000
80,000
50,000
60,000
C
-$200,000
80,000
80,000
80,000
80,000
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