From the information shown for possible location of campgrounds and lodging at a national park, determine which

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From the information shown for possible location of campgrounds and lodging at a national park, determine which project, if any, should be selected from the six mutually exclusive projects. Selected incremental B/C ratios are included. If the proper comparisons have not been made, state which one(s) are needed.

Location Identifier K Н Total cost, $ 20,000 45,000 50,000 35,000 85,000 70,000 B/C ratio 0.89 1.06 1.15 1.10 1.11 0.94

Comparison                         ΔB/C
G vs. H .....................................0.68
G vs. I ......................................0.73
H vs. J ......................................0.10
I vs. J .......................................1.07
J vs. G .....................................1.07
H vs. K ....................................1.00
H vs. L.....................................1.36
J vs. K .....................................0.82
J vs. L......................................1.00
K vs. L ....................................0.40
G vs. L....................................1.02

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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