Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of...

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 be 75 years, and the sponsoring agency's MARR is 9% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative Initial cost Annual benefits B-C ratio Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative D V A $56,000 $8,500 1.68 B $61,000 $10,500 1.91 Inc. B-C ratio 1.47 $155,000 $20,000 1.43 D $53,000 $7,000 1.47 Is the alternative acceptable? Yes V Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 75 years, and the sponsoring agency's MARR is 9% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative Initial cost Annual benefits B-C ratio Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative D V A $56,000 $8,500 1.68 B $61,000 $10,500 1.91 Inc. B-C ratio 1.47 $155,000 $20,000 1.43 D $53,000 $7,000 1.47 Is the alternative acceptable? Yes V