Question

What is the B/C Ratio for machine A?
What is the B/C Ratio for machine B?
What is the B/C Ratio for machine C?
Based on B/C ratio analysis, which alternative should be discarded from further analysis?
What is the incremental B/C ratio for the two remaining machines?

Answer 1

@wio

Answer 2

MA = 1.17
MB = 0.7021
MC = 1.78

Answer 3

@mathmale

Answer 4

B should be discarded because B/C<1 should be rejected. I am stuck on the last question

Answer 5

5 part question, my bad. I am stuck on the incremental of B/C

Answer 6

The key here is to understand what "incremental" means in this particular context.

"What is the incremental B/C ratio for the two remaining machines?"

Are we comparing the two remaining machines to each other?

Or not?

Hope you have a textbook or URL to some online reference that explains "incremental" in this context and gives examples. I have to admit I'm not able to answer without doing research of my own.

Best wishes to you. I admire your perseverance.

Answer 7

Okay thanks for looking. I will have to look in the textbook I guess. My instructor's lecture vids didn't show an example of the incremental of B/C this is why I asked.

Answer 8

I do appreciate your willingness to look this up in your textbook. By the way, I pride myself as much or more on my ability to find relevant information in various sources as I do on my recollection of factual detail. Perhaps you'll feel the same sooner or later. ;)

Answer 9

@jhonyy9

Answer 10

I think I have found a good example in the book but I am just trying to get some terms straighten out. so cost benefit per year would be a benefit or cost? Sounds like a benefit

Answer 11

As usual, I did an Internet search (for "cost benefit analysis") as soon as I saw your private message. Try doing the same.

Sometimes you have to spend money (cost) to save money (benefit). Suppose you wanted to buy the most economical car you could find (think: Toyota Prius). You have to spend the money to buy the car, but will save as much as 50% on fuel expenses.

I'd regard "cost benefit" as a positive quantity: You obtain something good in return for an initial cost.

Answer 12

Okay that is what I thought just wanted to confirm with you.

Answer 13

Suppose you had been driving a 1949 Plymouth coupe (as I once did). The car got about 15 miles per gallon. I decide to fork over (spend, cost) $ for a shiny new, bright red Prius. Of course that's gonna cost me up front, but just think: I could be getting over 45 mpg instead of 15 mpg. Boy, would that be a BENEFIT!

Answer 14

Okay, thank you for clarifying cost benefit.=)

Answer 15

what year?

Answer 16

50s?

Answer 17

;)

1949. Mom bought it for $300 in 1953 or '54.

Answer 18

Thou shalt not want another 1949 Plymouth 2-door sedan. ;)

Answer 19

wait you got rid of it?

Answer 20

I went away to college and Mom and Pop let bro Roger drive it. Eventually we traded it in on a 1960 Dodge Dart. I completely overhauled the Plymouth engine when I was 17; that took me 9 months.

Answer 21

YOu should have kept it and restored it. My dad almost inherited a 56 chevy but his brother got it isntead.

Answer 22

Thou shalt not want another 1949 Plymouth 2-door sedan. Now, a '56 Chevy might be a different story.

Answer 23

I am not that big of those priuses. ;) Slowwwwwww

Answer 24

We'd better follow OpenStudy's Code of Conduct and stop spamming this site. ;)

Answer 25

Hahahahaha well you started it.;)

Answer 26

Oh, really? ;) Bye for now.

Answer 27

dont be pointing fingers at me. Hahaa

Answer 28

bye

Answer 29

bye