Question: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 80 years, and

Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency€™s is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown on the next page. Use the B€“C method (incrementally) to select the best jogging track.

Alternative Initial cost $62,000 $52,000 $150,000 $55,000 $8,000 Annual $20,000 $9,000 $10,000 benefits B-C ratio 1.28 1

Alternative Initial cost $62,000 $52,000 $150,000 $55,000 $8,000 Annual $20,000 $9,000 $10,000 benefits B-C ratio 1.28 1.34 1.11 1.36

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