In the development of a publicly owned, commercial waterfront area, three possibleindependent plans are being considered. Their estimated costs and estimated benefits areas follows.IncrementconsideredIncrementalA (A-C)A (B-A)PlanAB$123,000 135,000 99,00012000Costs24000costsBenefits$ 139,000 150,000 114,000Incremental2500011000BenefitsВ-С1.131.111.15A (B C)1.040.916which plan should be selected?O AO Do nothingO B

B-C ratio = (Present value of expected return from the project / Present value of expected cost…

In the development of a publicly owned, commercial waterfront area, three possible independent plans are being considered. Their estimated costs and estimated benefits are as follows. Plan B Increment considered A (A-C) A (B-A) A Costs $123,000 135,000 99,000 Incremental 24000 12000 costs S 139,000 150,000 114,000 25000 Benefits Incremental 11000 Benefits 1.13 A (B C) 1.04 0.916 B-C 1.11 1.15 which plan should be selected? O A O Do nothing B

In the development of a publicly owned, commercial waterfront area, three possible independent plans are being considered. Their estimated costs and estimated benefits are as follows. Plan B Increment considered A (A-C) A (B-A) A Costs $123,000 135,000 99,000 Incremental 24000 12000 costs S 139,000 150,000 114,000 25000 Benefits Incremental 11000 Benefits 1.13 A (B C) 1.04 0.916 B-C 1.11 1.15 which plan should be selected? O A O Do nothing B

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 2.4CE

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