Question
A municipality has five potential projects to which it can allocate up to $400,000. What should be the favored projects and how much is the
A municipality has five potential projects to which it can allocate up to $400,000. What should be the favored projects and how much is the combined B/C ratio?
Possible projects
Cost
B/C
A
100,000
1.30
B
200,000
1.40
C
300,000
1.50
D
200,000
1.35
E
100,000
1.56
A. B+D with B/C= 1.537
B. C+E with B/C= 1.515
C. A+C with B/C= 1.543
D. A+B+E with B/C= 1.523
or none of rhe above.
A municipality has five potential projects to which it can allocate up to $400,000. What should be the favored projects and how much is the combined B/C ratio?
Possible projects | Cost | B/C |
A | 100,000 | 1.30 |
B | 200,000 | 1.40 |
C | 300,000 | 1.50 |
D | 200,000 | 1.35 |
E | 100,000 | 1.56 |
A. B+D with B/C= 1.537
B. C+E with B/C= 1.515
C. A+C with B/C= 1.543
D. A+B+E with B/C= 1.523
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
