Question
1. A local city that operates automobile parking facilities is evaluating a proposal that erect and operate a structure for parking in the city's downtown
1.
A local city that operates automobile parking facilities is evaluating a proposal that erect and operate a structure for parking in the city's downtown area. Three designs for the facilities to be built on available sites have been identified (all dollar are in thousands) All of the alternatives have a 30 year useful life:
| A | B | C | |
| Capital Investment | $2,440 | $880 | $1,600 |
| Annual O&M | $410 | $360 | $310 |
| Salvage Value | $0 | $0 | $0 |
| Annual Benefit | $830 | $750 | $600 |
If the city's interest rate is 10%, what is the B/C ratio for alternative B?
In Question #1, what is the Incremental B/C ratio when comparing C-B?
Based on the information in Question #1, what is the Incremental B/C ratio for the incremental analysis of A -B?
Based on the analysis of Question #1, which alternative should be selected?
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Rich Dads Increase Your Financial IQ Get Smarter With Your Money
Authors: Robert T. Kiyosaki
1st Edition
1612680658, 978-1612680651
