A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. a. Which system has the greatest B-C ratio? b. Which system has the largest incremental B-C ratio (based on differences between alternatives)? c. Which system should be chosen? System 3 4 PW of $800 $5,000 $5,000 $12,000 $11,000 costs PW of 6,000 14,000 6,000 22,000 18,000 benefits a. System V has the greatest B-C ratio, which is. (Round to two decimal places.)

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley.
Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are
the following.
a. Which system has the greatest B-C ratio?
b. Which system has the largest incremental B-C ratio (based on differences between alternatives)?
c. Which system should be chosen?
System
1
2
3
4
5
PW of
$800
$5,000
$5,000 $12,000 $11,000
costs
PW of
6,000
14,000
6,000
22,000
18,000
benefits
a. System
v has the greatest B-C ratio, which is
(Round to two decimal places.)
Transcribed Image Text:A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. a. Which system has the greatest B-C ratio? b. Which system has the largest incremental B-C ratio (based on differences between alternatives)? c. Which system should be chosen? System 1 2 3 4 5 PW of $800 $5,000 $5,000 $12,000 $11,000 costs PW of 6,000 14,000 6,000 22,000 18,000 benefits a. System v has the greatest B-C ratio, which is (Round to two decimal places.)
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