Benton County is evaluating 3 new projects for future investment. The county uses a MARR of...
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Benton County is evaluating 3 new projects for future investment. The county uses a MARR of 6% to make financial decisions. *CFD not required. a. Find the benefit-cost ratio for the three projects. Enter answer as 12.34. Initial Cost ($) Splash Fountains 2,500,000 Recycling Center Pedestrian Bridges 3,000,000 8,000,000 Uniform Annual Benefit ($) 800,000 900,000 1,500,000 Uniform Annual Cost ($) 350,000 750,000 400,000 Lifespan (years) 20 25 20 Benefit-Cost Ratio b. Which project(s) should not be considered? Enter full project name. c. What is the incremental benefit-cost ratio of the remaining projects? Enter answer as 12.34. d. Which project should the county choose? Why? Enter full name of project. Provide "why" in your worksheet. Benton County is evaluating 3 new projects for future investment. The county uses a MARR of 6% to make financial decisions. *CFD not required. a. Find the benefit-cost ratio for the three projects. Enter answer as 12.34. Initial Cost ($) Splash Fountains 2,500,000 Recycling Center Pedestrian Bridges 3,000,000 8,000,000 Uniform Annual Benefit ($) 800,000 900,000 1,500,000 Uniform Annual Cost ($) 350,000 750,000 400,000 Lifespan (years) 20 25 20 Benefit-Cost Ratio b. Which project(s) should not be considered? Enter full project name. c. What is the incremental benefit-cost ratio of the remaining projects? Enter answer as 12.34. d. Which project should the county choose? Why? Enter full name of project. Provide "why" in your worksheet.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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