There is five alternatives for improvement of a road. Determine which alternative should be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least 1.00. alternatives Annual Benefits Annual Cost A P900, 000 P1. 000,000 Pl. 300,000 PI. 100,000 P2. 800,000 P2. 100,000 P3, 300,000 P2, 700,000 E P1. 200,000 P3, 400,000

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
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. There is five alternatives for improvement of a road. Determine which alternative
should be chosen if the highway department is willing to invest money as long as there
is a B/C ratio of at least .00.
LAlternatives
Annual Benefits
Annual Cost
A
P900, 000
P1. 000,000
B
P1. 300,000
PI. 400,000
P2. 800.000
P2, 100,000
D
P3, 300,000
P2, 700,000
E
P1. 200,000
P3. 400,000
Transcribed Image Text:. There is five alternatives for improvement of a road. Determine which alternative should be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least .00. LAlternatives Annual Benefits Annual Cost A P900, 000 P1. 000,000 B P1. 300,000 PI. 400,000 P2. 800.000 P2, 100,000 D P3, 300,000 P2, 700,000 E P1. 200,000 P3. 400,000
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