Three mutually exclusive projects are being considered by Sesame Street Productions (SSP). The project details are provided in the table below. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Use a B/C analysis. SSP uses a MARR of 8%. Calculate the B/C Ratio for each project and enter your answers with two decimal places as 1.23. If there is a zero before the decimal, you must enter it as 0.12. Project A Project B Project C $600 SSP may eliminate project SSP must choose project Just enter the Project name as A, B, or C. Initial Cost Annual Benefits Project life (years) B/C Ratio $500 based on the B/C Analysis. $150 2 without performing an incremental analysis. $450 $150 4 $200 4

Three mutually exclusive projects are being considered by Sesame Street Productions (SSP). The project details are provided in the table below. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Use a B/C analysis. SSP uses a MARR of 8%. Calculate the B/C Ratio for each project and enter your answers with two decimal places as 1.23. If there is a zero before the decimal, you must enter it as 0.12. Project A Project B Project C $600 SSP may eliminate project SSP must choose project Just enter the Project name as A, B, or C. Initial Cost Annual Benefits Project life (years) B/C Ratio $500 based on the B/C Analysis. $150 2 without performing an incremental analysis. $450 $150 4 $200 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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