Question
A library shelving system has a first cost $20,000 and a useful life of 10 years. The annual maintenance is expected to be $2500. The
A library shelving system has a first cost $20,000 and a useful life of 10 years. The annual maintenance is expected to be $2500. The annual benefits to the library staff are expected to be $9,000. If the effective annual interest rate is 10%, what is the benefit/cost ratio of the shelving system?
| A. | 1.56 | |
| B. | 1.51 | |
| C. | 2.24 | |
| D. | 1.73 |
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
