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Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 70 years, and
Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 70 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the B-C method (incrementally) to select the best jogging track. Alternative Initial cost Annual benefits B-C ratio $52,000 $8,000 1.28 $150,000 $19,000 1.06 $61,000 10,000 1.37 $56,000 $9,000 1.34 Perform the incremental B-C Analysis. Fill-in the table below. (Round to two decimal places.) Alternative Inc. B-C ratio 1.28 2.12 Is the alternative acceptable? Yes Yes
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