Consider four alternatives A, B, C, and D with their respective annual benefits, disbenefits, costs and savings. Alternative Benefits P180,000 P250,000 P300,000 P400,000 Disbenefits P42,000 P68,000 P92,000 P118,000 Costs P128,000 P184,000 P265,000 P288,000 Savings P16,000 P27,000 P38,000 P54,000 Calculate the B/C ratio and (B-C) criterion for each alternative. Using the incremental B/C ratio, determine which alternative should be selected. O Select Alternative A O Select Alternative C O Select Alternative B O Select Alternative D
Consider four alternatives A, B, C, and D with their respective annual benefits, disbenefits, costs and savings. Alternative Benefits P180,000 P250,000 P300,000 P400,000 Disbenefits P42,000 P68,000 P92,000 P118,000 Costs P128,000 P184,000 P265,000 P288,000 Savings P16,000 P27,000 P38,000 P54,000 Calculate the B/C ratio and (B-C) criterion for each alternative. Using the incremental B/C ratio, determine which alternative should be selected. O Select Alternative A O Select Alternative C O Select Alternative B O Select Alternative D
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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