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The invesment should or should not be made as the B/C ratio is Greater than, lower than or equal to 1? A local municipality is
The invesment should or should not be made as the B/C ratio is Greater than, lower than or equal to 1?
A local municipality is considering investine $250,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the irvestment will result in annual costs and annual benefits over a 15 -year period as shown in the cash flow profile given below in thousands of dollars. Notice, an intermediate investment of $150,000 is anticipated in the 6th year of the irwestment. Based on a MARR of 5%, use benefit-cost ratio analysis to determine whether the investment should be made. (All values in thousand dollars) Click here to access the TVM Factor Table cakulator. BCC= Carry all interim calculations to 5 decimal places and then round your final answer to 4 decimal places. The tolerance is 0.0003. The irwestment be made as the B/C ratio is 1. A local municipality is considering investine $250,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the irvestment will result in annual costs and annual benefits over a 15 -year period as shown in the cash flow profile given below in thousands of dollars. Notice, an intermediate investment of $150,000 is anticipated in the 6th year of the irwestment. Based on a MARR of 5%, use benefit-cost ratio analysis to determine whether the investment should be made. (All values in thousand dollars) Click here to access the TVM Factor Table cakulator. BCC= Carry all interim calculations to 5 decimal places and then round your final answer to 4 decimal places. The tolerance is 0.0003. The irwestment be made as the B/C ratio is 1Step by Step Solution
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