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1.Compare the following 3 altrernatives using the Incremental Benefit/Cost Ratio method. Consider the salvage value as a cost (i.e., put in denominator). i = %3

1.Compare the following 3 altrernatives using the Incremental Benefit/Cost Ratio method. Consider the salvage value as a cost (i.e., put in denominator). i = %3

Alt.

Construction cost $

Bnefit ($/yr)

Salvage $

Service Life (yrs)

A

365,000

100,000

45,000

7

B

400,000

120,000

23,500

8

C

800,000

140,000

75,000

9

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