7.28 The four independent alternatives shown are being compared using the B/C method. Which alternative(s), if any,

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7.28 The four independent alternatives shown are being compared using the B/C method. Which alternative(s), if any, should be selected? Table Summary: Table divided into four columns compares four investment options based on the overall cost. Columns 1 to 3 are marked from left to right as: alternative; cost, in million dollars; benefit by cost ratio for alt. vs. dn. Column 4, delta benefits by cost when compared with alternative, is further divided into four sub-groups as: a; b; c; and

d. Alternative Cost, $ millions B/C Ratio for Alt. vs. DN ΔB/C When Compared with Alternative A B C D A 20 1.1 — B 25 0.96 0.40 — C 33 1.22 1.42 2.14 — D 45 0.89 0.72 0.80 0.08 — 9. Page 219

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Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

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