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An investor is considering constructing an office building. Three different buildings are being analyzed. Using benefit-cost ratio analysis and an 8% MAAR, determine which alternative,
An investor is considering constructing an office building. Three different buildings are being analyzed. Using benefit-cost ratio analysis and an 8% MAAR, determine which alternative, if any, should be selected. Compare the 5 stories and 2 stories buildings using the benefit-cost ratio: The benefit-cost ratio is 1.30. The 5 stories option is better than the 2 stories alternative. The benefit-cost ratio is 0.75. The 2 stories option is better than the 5 stories alternative. The benefit-cost ratio is 1.19. The 5 stories option is better than the 2 stories alternative. The benefit-cost ratio is 0.91. The 2 stories option is better than the 5 stories alternative. Select the best alternative using the benefit-cost ratio: The benefit-cost ratio is 1.10. The 10 stories option is better than the 2 stories alternative. Select the 10 stories building. The benefit-cost ratio is 0.70. The 2 stories option is better than the 10 stories alternative. Select the 2 stories building. The benefit-cost ratio is 0.88. The 5 stories option is better than the 10 stories alternative. Select the 5 stories building. The benefit-cost ratio is 1.30. The 10 stories option is better than the 5 stories alternative. Select the 10 stories building
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