Question
A team is to be installed to improve the operations of a company. The 2 alternatives below have useful lives of 20 years. Using cost
A team is to be installed to improve the operations of a company. The 2 alternatives below have useful lives of 20 years. Using cost benefit ratio analysis and an interest rate of 7% answer the following blanks.
Alt A Alt B
Initial cost $ 35000 $ 100000
Annual operating cost 8000 2000
Annual income 2000 3500
Residual value 20,000 0
Compute the incremental cost benefit ratio: Answer is ___?
The selected alternative is _____? ( choose AoB)
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
