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Q2: 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). System EOY A -$160,000 -$245,000 -$200,000 1 80,000 120,000 80,000 2 70,000 100,000 80,000 3 60,000 80,000 80,000 4 50,000 60,000 80,000 If the town's MARR is 10% per year, use the B-C ratio method to Calculate which system is best.

Q2: 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). System EOY A -$160,000 -$245,000 -$200,000 1 80,000 120,000 80,000 2 70,000 100,000 80,000 3 60,000 80,000 80,000 4 50,000 60,000 80,000 If the town's MARR is 10% per year, use the B-C ratio method to Calculate which system is best.

Essentials Of Investments
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
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Q2: 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). System EOY A -$160,000 -$245,000 -$200,000 1 80,000 120,000 80,000 2 70,000 100,000 80,000 3 60,000 80,000 80,000 4 50,000 60,000 80,000 If the town's MARR is 10% per year, use the B-C ratio method to Calculate which system is best.
Transcribed Image Text:Q2: 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). System EOY A -$160,000 -$245,000 -$200,000 1 80,000 120,000 80,000 2 70,000 100,000 80,000 3 60,000 80,000 80,000 4 50,000 60,000 80,000 If the town's MARR is 10% per year, use the B-C ratio method to Calculate which system is best.
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