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  3. 4. the city is considering purchasing one of three

4. The city is considering purchasing one of three different types of ambulances that differ...

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Accounting

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4. The city is considering purchasing one of three different types of ambulances that differ in the amount of capital costs, operating costs, and the medical services that can be provided. The costs and benefits are as follows PV Gross Benefits | PV Operating Costs PV Capital Costs Marquee Ambulance 161,000 | 38,000 81,000 | H&W Emergency Horton Rescue Vehicles 252,000 382,000 119,000 164,000 64,000 124,000 a. Compute the Benefit/Cost ratio for each option, where "Benefit" is the "Net-Benefit", i.e., defined as the Gross Benefits minus the Operating Cost. b. Re-compute the Benefit/Cost ratio where the "Benefit" is the Gross Benefit and the "Cost" is the sum of the Operating Costs and the Capital Costs. c. Do these different ratios give consistent ratios? Explain. d. As the financial adviser to the city, which of the three ambulance options should be financed if the city can only afford to purchase one

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