Question: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown on the next page. Use the B-C method (incrementally) to select the best jogging track.
Alternative
A B C D
Initial cost $62,000 $52,000 $150,000 $55,000
Annual $10,000 $8,000 $20,000 $9,000
benefits
B-C ratio 1.34 1.28 1.11 1.36