Chattanooga is considering three mutually exclusive designs for a fire station as shown in the table below. The interest rate is 10% and the project is design to last for 50 years. Using incremental benefit-cost analysis, what is the incremental B/C ratio for the first pair when ordering the alternatives in order of increasing investment? Ans. x.xx The B/C ratio for the second pair? Ans xxx Based on this analysis, which project would you select? Ans. X FS1 S (8,500,000) $ 2,150,000 $ 750,000 $ 1,250,000 $ $856,229 FS2 FS3 $ (10,000,000) (12,000,000) Investment Benefits O&M Expenses Salvage Value CR- B/C 1,750,000 2,000,000 700,000 $ 2,265,000 $2,500,000 $1,208,592 725,000 $ $1,007,088 1.31 1.31 1.34 Chattanooga is considering three mutually exclusive designs for a fire station as shown in the table below. The interest rate is 10% and the project is design to last for 50 years. Using incremental benefit-cost analysis, what is the incremental B/C ratio for the first pair when ordering the alternatives in order of increasing investment? Ans. x.xx The B/C ratio for the second pair? Ans xxx Based on this analysis, which project would you select? Ans. X FS1 S (8,500,000) $ 2,150,000 $ 750,000 $ 1,250,000 $ $856,229 FS2 FS3 $ (10,000,000) (12,000,000) Investment Benefits O&M Expenses Salvage Value CR- B/C 1,750,000 2,000,000 700,000 $ 2,265,000 $2,500,000 $1,208,592 725,000 $ $1,007,088 1.31 1.31 1.34