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A City has identified a series of projects to replace incandescent light bulbs with LED bulbs in traffic lights, office buildings, and other uses. 1)
A City has identified a series of projects to replace incandescent light bulbs with LED bulbs in traffic lights, office buildings, and other uses.
1) Which projects should be done if the budget is (a) 500,000; (b) 1,200,000?
2) What is the opportunity cost of capital for each budget?
Project First Cost Annual Benefit Economic Life (years) 50,000 70,000 40,000 12,500 75,000 32,000 125,000 15 200,000 300,000 100,000 50,000 250,000 150,000 400,000 10 10 20 Project First Cost Annual Benefit Economic Life (years) 50,000 70,000 40,000 12,500 75,000 32,000 125,000 15 200,000 300,000 100,000 50,000 250,000 150,000 400,000 10 10 20Step by Step Solution
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