a. Based on PW method, Design Z is more economical. . The modified B/C ratio of Design Y is The modified B/C ration of Design Z is (Round to two decimal places) (Round to two decimal places) The incremental B/C ratio is (Round to two decimal places) Therefore, based on the B/C ratio method, Design Z is more economical Investment cost Annual revenue Annual cost Useful life Salvage value Net PW Design Y $140,000 $57,659 $17,618 15 years $14,700 $135,399 Design Z $275,000 $96,354 $31,687 15 years $33,000 $171,467

a. Based on PW method, Design Z is more economical. . The modified B/C ratio of Design Y is The modified B/C ration of Design Z is (Round to two decimal places) (Round to two decimal places) The incremental B/C ratio is (Round to two decimal places) Therefore, based on the B/C ratio method, Design Z is more economical Investment cost Annual revenue Annual cost Useful life Salvage value Net PW Design Y $140,000 $57,659 $17,618 15 years $14,700 $135,399 Design Z $275,000 $96,354 $31,687 15 years $33,000 $171,467

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 17SQ

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Similar questions

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