The four mutually exclusive alternatives below are being compared using the B/C method.  What alternative, if any, should be selected?       Alternative   Initial Investment     B/C Ratio Incremental B/C When Compared with Alternative J K L M J $40K 1.10 -       K $50K 0.96 0.40 -     L $66 1.22 1.42 2.14 -   M $90 1.07 0.72 0.80 1.11 - Group of answer choices Either L or J Either J or K Select none Alt. J Alt. K Either K or L Alt. L Alt. M Either L or M

A shopping center is to be built in one of four different cities. The cash flow estimates associated with each alternative are given below. You will be using the conventional B/C ratio method to determine which city should be selected at an interest rate of 15% per year. One alternative must be selected. The following table shows the details of each alternative. Alternative Benefits, s/year Disbenefits, $/year ERR City1 95 12 8 170 City2 Life, years First cost, $ M&O costs, $/year Please find the following - B/C of City1 ✓ Incremental B/C of City1 vs. City3 30 110 55 12 210 30 City3 90 12 8 160 30 City4 105 15 10 180 25 Based on the incremental B/C analysis applied to all four cities, choose one city among the four cities. A. 1.22 B. City3 C. 0.00 D. City2 E. 2.50 F. 1.00 G.1.19 H.City4 1. City1 J. 2.24 K. 1.48

Calculate the conventional B/C ratio for the following cash flow estimates at a discount rate of 10% per year. Is the project justified? Item Estimate PW of Benefits, $ AW of Disbenefits, $/year PW Cost, $ Life, Years 4,150,000 45,000 1,325,000 20

The estimated annual cash flows for a proposed municipal government project are costs of $750,000 per year, benefits of $950,000 per year, and disbenefits of $200,000 per year. Calculate the conventional B/C ratio at an interest rate of 10% per year, and determine if it is economically justified. The B/C ratio is The project is economically justified