Three mutually exclusive projects are being considered by Sesame Street Productions (SSP). The project details are provided in the table below. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Use a B/C analysis. SSP uses a MARR of 8%. Calculate the B/C Ratio for each project and enter your answers with two decimal places as 1.23. If there is a zero before the decimal, you must enter it as 0.12. Project A Project B Project C $600 SSP may eliminate project SSP must choose project Just enter the Project name as A, B, or C. Initial Cost Annual Benefits Project life (years) B/C Ratio $500 based on the B/C Analysis. $150 2 without performing an incremental analysis. $450 $150 4 $200 4

Three mutually exclusive projects are being considered by Sesame Street Productions (SSP). The project details are provided in the table below. SSP has heard about your excellent analysis skills and wants you to help them make a decision. Use a B/C analysis. SSP uses a MARR of 8%. Calculate the B/C Ratio for each project and enter your answers with two decimal places as 1.23. If there is a zero before the decimal, you must enter it as 0.12. Project A Project B Project C $600 SSP may eliminate project SSP must choose project Just enter the Project name as A, B, or C. Initial Cost Annual Benefits Project life (years) B/C Ratio $500 based on the B/C Analysis. $150 2 without performing an incremental analysis. $450 $150 4 $200 4

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 1.2CE

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