Due to an expanded growth in a city-waste capacity

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Reference no: EM13798048

Due to an expanded growth in a city, new waste capacity is needed. A new truck is evaluated to replace the presently owned. The interest rate is 8%.

Present value= $62,000

Annual cost= $12,500

Annual savings= $31,000

Salvage value= $7,200

Life in years= 8

a. B/C = 1.95

b. B/C= 1.45

c. B/C= 0.69

d. B/C= 0.51

Reference no: EM13798048

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