Given the following three mutually exclusive alternatives. Find an incremental B/C of project C-B. i=10%. First Cost Annual benefit Useful Life 0.88 0.84 0.55 no correct answer A 45 13 5 B 36 11 5 C 54 20 5 Given the following three mutually exclusive alternatives, which alternative is preferable based upon the B/C analysis and i = 10%? A B First Cost Annual benefit Useful Life None of the above Alternative C Either A or B Alternative A 45 13 5 36 11 5 C 54 20 12 5

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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Given the following three mutually exclusive
alternatives. Find an incremental B/C of project
C-B. i=10%.
A
First Cost
45
Annual benefit 13
Useful Life
5
0.88
0.84
0.55
no correct answer
1.90
1.58
B
36
11
5
C
54
20
5
Given the following three mutually exclusive
alternatives, which alternative is preferable based
upon the B/C analysis and i= 10%?
A
B
45
36
13
11
5
5
First Cost
Annual benefit
Useful Life
None of the above
Alternative C
Either A or B
Alternative A
Alternative B
C
54
20
5
Transcribed Image Text:Given the following three mutually exclusive alternatives. Find an incremental B/C of project C-B. i=10%. A First Cost 45 Annual benefit 13 Useful Life 5 0.88 0.84 0.55 no correct answer 1.90 1.58 B 36 11 5 C 54 20 5 Given the following three mutually exclusive alternatives, which alternative is preferable based upon the B/C analysis and i= 10%? A B 45 36 13 11 5 5 First Cost Annual benefit Useful Life None of the above Alternative C Either A or B Alternative A Alternative B C 54 20 5
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