For 4 investment options that a city is considering, which of the below statements is true? Rate
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Question:
| Rate | 14.00% | per year | ||
| Project | Initial cost | Life of project | Salvage Value | Annual benefits |
| A | ($6,545,000) | 8 | $593,000 | $1,605,000 |
| B | ($8,328,000) | 10 | $675,000 | $1,212,000 |
| C | ($9,674,000) | 12 | $2,262,000 | $1,722,000 |
| D | ($8,546,500) | 7 | $674,000 | $1,228,000 |
Group of answer choices
Choose Option D as the incremental B/C ratio between it and its final competitor is 1.55.
Choose Option D as the incremental B/C ratio between it and its final competitor is 1.20.
Choose Option A as the incremental B/C ratio between it and its final competitor is 0.97.
Choose Option A as the incremental B/C ratio between it and its final competitor is 0.45.
Expert Answer:
Related Book For 
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
