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Two plans have been proposed for an express passenger train between Springfield and Kansas City. The plans are summarized in the table below. Costs and benefits are in millions of dollars. Assume a MARR of 10%. If neither plan is done, then there would be no costs nor benefits. Info Plan A Plan B Econ. Life, Years 40 20 Annual Benefits $25 $22 Annual M & O Cost $5 $4 Initial Cost $300 $160 Assume identical replacement costs and benefits for Plan B and use annual analysis when computing the ratios below: What is the benefit-cost ratio of plan A.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91846125

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