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TABLE P10-16 Mutually Exclusive Alternatives for Problem 10-16 Equivalent Annual Cost of Project Expected Annual Flood Damage Alternative Annual Benefits I. No flood control $100,000 II. Construct levees $30,000 80,000 $112,000 III. Build small dam $100,000 5,000 110,000

TABLE P10-16 Mutually Exclusive Alternatives for Problem 10-16 Equivalent Annual Cost of Project Expected Annual Flood Damage Alternative Annual Benefits I. No flood control $100,000 II. Construct levees $30,000 80,000 $112,000 III. Build small dam $100,000 5,000 110,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consider the mutually exclusive alternatives in the shown table. Which alternative would be chosen according to these decision criteria?Solve, a. Maximum benefit b. Minimum cost c. Maximum benefits minus costs d. Largest investment having an incremental B–C ratio larger than one e. Largest B–C ratio Which project should be chosen?

TABLE P10-16 Mutually Exclusive Alternatives for Problem 10-16 Equivalent Annual Cost of Project Expected Annual Flood Damage Alternative Annual Benefits I. No flood control $100,000 II. Construct levees $30,000 80,000 $112,000 III. Build small dam $100,000 5,000 110,000
Transcribed Image Text:TABLE P10-16 Mutually Exclusive Alternatives for Problem 10-16 Equivalent Annual Cost of Project Expected Annual Flood Damage Alternative Annual Benefits I. No flood control $100,000 II. Construct levees $30,000 80,000 $112,000 III. Build small dam $100,000 5,000 110,000
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