The city of Oak Ridge is evaluating three mutually exclusive landscaping plans for refurbishing a public greenway. Benefits to the community have been estimated by a landscaping committee, and the costs of planting trees and shrubbery, as well as maintaining the greenway, are summarized below. The city's discount rate is

9%

per year, and the planning horizon is

12

years.

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Click the icon to view the interest and annuity table for discrete compounding when the MARR is

9%

per year.

	Landscaping plan
	A		B		C
Initial planting cost	$68,000		$52,000		$75,000
Annual maintenance expense	4,700		5,300		4,100
Annual community benefits	20,500		18,000		21,000

a. Use the B-C ratio method to recommend the best plan when annual maintenance expenses offset annual benefits in the numerator.

Perform the incremental B-C Analysis. Fill-in the table below. (Round to four decimal places.)

Alternative	Inc. B-C ratio	Is the alternative acceptable?
C B A