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An alternative has the following cash flows: Benefits of $30,000 per year, Disbenefits of $14,000 per year, Initial cost of $300,000 and M&O costs of
An alternative has the following cash flows: Benefits of $30,000 per year, Disbenefits of $14,000 per year, Initial cost of $300,000 and M&O costs of $10,000 per year. If the alternative has an infinite life and the interest rate is 10% per year, the B/C ratio is closest to:
Select one:
a.0.32
b.0.80
c.0.40
d.0.70
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