Stock to be purchased.
Answer to Problem 74P
Since the benefit-cost is highest for the stock of S. Products, investment should be made in S Products.
Explanation of Solution
Given information:
Minimum
Six stocks are available.
Calculate the ratio of PW of benefits and PW of costs for each stock.
Conclusion:
Since the benefit-cost is highest for the stock of S. Products, investment should be made in S Products.
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Chapter 5 Solutions
ENGINEERING ECO ALANYSIS W/STUDY GUIDE
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