Site N Site S Initial Cost, $ 11 x 10 27 x 10 Annual M&O, S/year Benefits, $lyear Disbenefits, S/year Life, years 100,000 90,000 990,000 2,100,000 120,000 300,000

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
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Two sites for suspension bridges are under consideration for crossing the Allegheny River in Pittsburgh, PA. Use the B/C ratio method at a discount
rate of 6% per year to determine which bridge, if either, should be built.

Site N
Site S
Initial Cost, $
11 x 10
27 x 10
Annual M&O, S/year
Benefits, $lyear
Disbenefits, S/year
Life, years
100,000
90,000
990,000
2,100,000
120,000
300,000
Transcribed Image Text:Site N Site S Initial Cost, $ 11 x 10 27 x 10 Annual M&O, S/year Benefits, $lyear Disbenefits, S/year Life, years 100,000 90,000 990,000 2,100,000 120,000 300,000
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