Alternative A B C D E Annual Equivalent Cost Php 49,990,000 53,000,000 68,250,000 61,000,000 44,500,000 Benefits Php 56,990,000 55,300,000 75,000,000 69,850,000 41,000,000
Alternative A B C D E Annual Equivalent Cost Php 49,990,000 53,000,000 68,250,000 61,000,000 44,500,000 Benefits Php 56,990,000 55,300,000 75,000,000 69,850,000 41,000,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The Water Regulatory Agency is considering five mutually exclusive alternatives for providing a sewage-treatment facility. The annual equivalent costs and estimated benefits of the alternatives are as follows:
Using the problem above, which plan, if any, should be adopted if the Water Regulatory Agency wishes to invest if, and only if, the B–C ratio is at least 1.0? Use AW.
Transcribed Image Text:Alternative
A
B
C
D
E
Annual Equivalent
Cost
Php 49,990,000
53,000,000
68,250,000
61,000,000
44,500,000
Benefits
Php 56,990,000
55,300,000
75,000,000
69,850,000
41,000,000
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