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2. A city DOT is purchasing a new snow plow for winter road maintenance. The agency is considering three alternatives. Given the following information
2. A city DOT is purchasing a new snow plow for winter road maintenance. The agency is considering three alternatives. Given the following information about each alternative, use incremental benefit-cost analysis to determine which option the agency should choose. Assume i = 3%. Initial cost Life Annual operations Total annual benefits Annual maintenance cost increase after year 1 Option A $300,000 10 yrs $45,000 $150,000 $2,500 Option B $400,000 10 yrs $35,000 $200,000 $5,000 Option C $200,000 5 yrs $40,000 $125,000 $5,000
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Employment Law for Human Resource Practice
Authors: David J. Walsh
5th edition
1305112121, 1305112124, 1305830547, 978-1305112124
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