3- Which of the following mutually exclusive projects is the best alternative using the incremen cost/Benefit analysis with 8% discount rate? Alternative First cost, $ M&O costs, $/year Benefits, $/year Disbenefits, $/year Life, years Project 1 320,000 45,000 110,000 20,000 10 Project 2 750,000 15,000 200,000 40,000 30 Project 3 540,000 35,000 150,000 45,000 20

3- Which of the following mutually exclusive projects is the best alternative using the incremen cost/Benefit analysis with 8% discount rate? Alternative First cost, $ M&O costs, $/year Benefits, $/year Disbenefits, $/year Life, years Project 1 320,000 45,000 110,000 20,000 10 Project 2 750,000 15,000 200,000 40,000 30 Project 3 540,000 35,000 150,000 45,000 20

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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