A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan will save $950,000 annually but their cost is different. The benefits will last for 30 years. Based on a benefit-cost analysis what should the agency do, if i = 10%? B C D E F $7,250,000 | S7,500,000 || S6,000,000 | $6,500,000 $140,000 $8,000,000 | $5,500,000 $150,000 $60,000 Initial Cost Annual O & M | $90,000 $110,000 $80,000

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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A city is planning to renovate their current facility with hi-tech computerized systems.
Four plans are proposed by the engineers. Each plan will save $950,000 annually but
their cost is different. The benefits will last for 30 years. Based on a benefit-cost analysis
what should the agency do, if i= 10%?
A
В
C
D
E
F
$7,250,000 | $7,500,000 | S6,000,000 | $6,500,000
$140,000
$8,000,000 | $5,500,000
$150,000
$60,000
Initial Cost
Annual O & M $90,000
$110,000
$80,000
Transcribed Image Text:A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan will save $950,000 annually but their cost is different. The benefits will last for 30 years. Based on a benefit-cost analysis what should the agency do, if i= 10%? A В C D E F $7,250,000 | $7,500,000 | S6,000,000 | $6,500,000 $140,000 $8,000,000 | $5,500,000 $150,000 $60,000 Initial Cost Annual O & M $90,000 $110,000 $80,000
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