Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a

Question:

Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a higher total cost than X. If the B/C ratios are 1.2 and 1.0 for alternatives X and Y, respectively, which alternative should be selected? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 24, 2018 12:24 PM

See More Questions

A total of $50,000 was allocated to a project to detect and reduce insider theft in the ZipCar auto parts store. Two alternatives identified as Y and Z are under consideration. The overall ROR on the...
Three alternatives identified as X, Y, and Z were evaluated by the B/C method. The analyst calculated project B/C values of 0.92, 1.34, and 1.29. The alternatives are listed in the order of...
The rates of return on alternatives X and Y are 15% and 12%, respectively. Alternative Y requires a larger investment than alternative X. (a) What is known about the rate of return on the increment...
The following e-mail message contains numerous errors related to what you've learned about planning and writing business messages. Using the information it contains, write a more effective version....
Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 80 percent. Over the same period, an increasing number...
On January 1, 2020, Scott Enterprises inventory of 50,000. At December 31, 2020, Scott had the following account balances. Freight-in ....................................................................
Consider the following two models where $E(\boldsymbol{\varepsilon})=\mathbf{0}$ and $\operatorname{Var}(\boldsymbol{\varepsilon})=\sigma^{2} \mathbf{I}$ : Model A: $\mathbf{y}=\mathbf{X}_{1}...
Consider the following data regarding Orange Countys photocopying requirements. The county administrator is trying to decide whether to replace the old equipment. Because of rapid changes in...
ces The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend...
OCAS PROJECT. Effect of Damping. Consider a vibrating system of your choice modeled by y" + cy' + ky = d(t). %3D (a) Using graphs of the solution, describe the effect of continuously decreasing the...
For a wireless network with integrated services, e.g., including both voice and data applications, there are two basic channel allocation schemes: Complete Sharing (CS) and Complete Partitioning...
One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount...
What is meant by the possible states of nature?
Comment on the advantages and disadvantages of using athlete endorsers in advertising.
When is personal selling used by sports marketers? Describe, in detail, the steps in the strategic selling process.
Describe how an athletes image has an impact upon brand development.
Outline the steps for designing a sports sponsorship program.
What are the characteristics of the total product?
What is the risk insured by private mortgage insurance?
The MIT Sloan School of Management is one of the leading business schools in the U.S. The following table contains the tuition data for the masters program in the Sloan School of Management. a. Use...
A new municipal refuse collection vehicle can be purchased for $84,000. Its expected useful life is 6 years, at which time the market value and book value will be zero. Before-tax cash flow (BTCF)...
You do not start saving money until age 46. On your 46th birthday you dutifully invest $10,000 each year until you finish your deposits when you reach the age of 65. The annual interest rate is 8%...
A single-stage centrifugal blower is to be selected for an engineering design application. Suppliers have been consulted, and the choice has been narrowed down to two new models, both made by the...
After you've completed this week's assigned reading, watch the video below. Next, respond to the Discussion questions underneath. Your first post should answer those questions and should be made by...
Factorize (x4 - 20x + 100)
Paragraph discussing food insecurity in the United States. What agencies in the federal government play an important role in ameliorating this situation? What groups of people are at particular risk?

Two alternatives, identified as X and Y, are evaluated using the B/C method. Alternative Y has a

Question:

Step by Step Answer:

Alternative X should be sel...View the full answer

Engineering Economy

Students also viewed these Business questions