A) use annual worth and the B/C ratio to identify the better alternatives

B) if this were a set of independent alternatives, how would you conduct a comparison?

Six mutually exclusive investments have been iden- tified for evaluation by means of the benefit-cost ratio method. Assume a MARR of 10% and an equal project life of 25 years for all alternatives. (a) Use annual worth and the B/C ratio to 8-17 identify the better alternative. If this were a set of independent alternatives, how would you conduct a comparison? (b) Mutually Exclusive Alternatives Annualized 2 3 4 5 6 Net costs to 15.5 13.7 16.8 10.2 17.0 23.3 sponsor ($M) Net benefits to 20.0 16.0 15.0 13.7 22.0 25.0