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There are five alternatives for improvement of a road. Determine which alternative would be ch

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

There are five alternatives for improvement of a road. Determine which alternative would be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least 1.00.

Alternatives
Annual Benefits
Annual Cost
P 9,000,000
P 1,000,000
A
P 1,300,000
P1,400,000
P 2,800,000
P 2,100,000
P 3,300,000
P 2,700,000
P 4,200,000
P3,400,000

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