Consider two mutually exclusive transportation alternatives, D and E for which equivalent annual benefits to the...
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Consider two mutually exclusive transportation alternatives, D and E for which equivalent annual benefits to the pubik are $225milon and S on information in the table below, knowing that MARR 10% and project life of the project is 40 years with a market (salvage valur Alternative Capital Recovery 310milion 3125milion Annual Operation and mainterance Cost 85 milion 315milon Which Alternative should be selected base on AW conventional B-C Ratio? O Conventional B-C (D) - 1.5 Conventional BC (E)-13, Select E O Conventional B-C (D) - 1.5 Conventional B-C (E) = 1.5, Select E O Conventional B-C (D) - 0.8 Conventional B-C (E) = 0.7, No Selection O Conventional B-C (D) = 1.5 Conventional BC (E) • 1.5, Select D Conventional B-C E) -15, Select D O Conventional B-C (D)= 1.3 Conventional B-CE)-15. Select E O Conventional B-C (D) - 1.3 Conventional B-C (E13, Select D O Conventional B-C (D) - 1.5 Consider two mutually exclusive transportation alternatives, D and E for which equivalent annual benefits to the pubik are $225milon and S on information in the table below, knowing that MARR 10% and project life of the project is 40 years with a market (salvage valur Alternative Capital Recovery 310milion 3125milion Annual Operation and mainterance Cost 85 milion 315milon Which Alternative should be selected base on AW conventional B-C Ratio? O Conventional B-C (D) - 1.5 Conventional BC (E)-13, Select E O Conventional B-C (D) - 1.5 Conventional B-C (E) = 1.5, Select E O Conventional B-C (D) - 0.8 Conventional B-C (E) = 0.7, No Selection O Conventional B-C (D) = 1.5 Conventional BC (E) • 1.5, Select D Conventional B-C E) -15, Select D O Conventional B-C (D)= 1.3 Conventional B-CE)-15. Select E O Conventional B-C (D) - 1.3 Conventional B-C (E13, Select D O Conventional B-C (D) - 1.5
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Alternative D Annual Benefits 225 million Annual O and M 5 million Capital recov... View the full answer
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Posted Date:
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