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Elm City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below. Purchase Cost: $7,300 Annual Savings:
Elm City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below.
Purchase Cost: $7,300 Annual Savings: $1,100 Life: 15 years
What is the replacements benefit-cost ratio if the effective annual interest rate is 8%?
a)1.34
b)1.29
c)1.22
d)2.67
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