Elm City is considering a replacement for its police radio. The benefits and costs of the replacement

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Elm City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below. What is the replacement's benefit/cost ratio if the effective annual interest rate is 8 percent?

Purchase Cost: $\$ 7,000$

Annual Savings: $\$ 1,500$
Life: 15 years

a. 3.21

b. 1.83

c. 1.76

d. 1.34

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Question Posted: Apr 02, 2024 03:56 AM

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Elm City is considering a replacement for its police radio. The benefits and costs of the replacement

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To calculate the benefitcost ratio we need to find the present worth of benefits and costs associated with the replacement and then divide the present worth of benefits by the present worth of costs G...View the full answer

Principles Of Engineering Economic Analysis

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