Question: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 90 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 90 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative A B C D Initial cost $50,000 $56,000 $145,000 $62,000 Annual benefits $8,000 $9,000 $21,000 $10,500 B-C ratio 1.33 1.34 1.21 1.41 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio Is the alternative acceptable? A 1.33 Yes
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