public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. (10.9)

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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10-17. Four mutually exclusive projects are being
considered for a new 2-mile jogging track. The life of
the track is expected to be 80 years, and the sponsoring
agency's MARR is 12% 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. (10.9)
A
B
Initial cost $62,000 $52,000
Annual
$10,000
$8,000
benefits
B-C ratio
Alternative
1.34
1.28
C
$150,000
$20,000
1.11
D
$55,000
$9.000
1.36
Transcribed Image Text:10-17. Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% 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. (10.9) A B Initial cost $62,000 $52,000 Annual $10,000 $8,000 benefits B-C ratio Alternative 1.34 1.28 C $150,000 $20,000 1.11 D $55,000 $9.000 1.36
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