A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 7%, Using the conventional B/C ratio, what is...


A small town is considering two potential alternatives<br>for a garbage collection system. The following cost<br>data has been compiled. If the interest rate is 7%,<br>Using the conventional B/C ratio, what is the ratio<br>and which alternative should be chosen? Salvage<br>value is considered an offset to the original cost.<br>System A<br>System B<br>Year O, first cost 350,000<br>250,000<br>Annual savings 32,000<br>22,000<br>Salvage value<br>50,000<br>40,000<br>LIfe<br>30<br>30<br>

Extracted text: A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 7%, Using the conventional B/C ratio, what is the ratio and which alternative should be chosen? Salvage value is considered an offset to the original cost. System A System B Year O, first cost 350,000 250,000 Annual savings 32,000 22,000 Salvage value 50,000 40,000 LIfe 30 30

Jun 11, 2022
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