Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) A Initial cost $50,000 Annual benefits $8,000 B-C ratio 1.78 Alternative Alternative A B $145,000 $21,000 1.61 C $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? 1.78 Yes

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to
ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by
e shown below. Use the B-C method (incrementally) to select the best jogging track.
Problem 10-17 (algorithmic)
Q
Initial cost
Annual benefits
B-C ratio
A
$50,000
$8,000
1.78
Alternative
A
Alternative
B
$145,000
$21,000
1.61
$55,000
$9,000
1.82
D
$64,000
$10,500
1.82
Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.)
Inc. B-C ratio Is the alternative acceptable?
Yes
1.78
□
Transcribed Image Text:Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to ing agency's MARR is 9% per year. Annual benefits to the public have been estimated by e shown below. Use the B-C method (incrementally) to select the best jogging track. Problem 10-17 (algorithmic) Q Initial cost Annual benefits B-C ratio A $50,000 $8,000 1.78 Alternative A Alternative B $145,000 $21,000 1.61 $55,000 $9,000 1.82 D $64,000 $10,500 1.82 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Inc. B-C ratio Is the alternative acceptable? Yes 1.78 □
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