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An alternative has the following cash flows Benefits of $50,000 per year Disbenefits of $27,000 per year Initial cost of $250,000 M&O costs of $10,000

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An alternative has the following cash flows Benefits of $50,000 per year Disbenefits of $27,000 per year Initial cost of $250,000 M&O costs of $10,000 per year If the alternative has an infinite life and the interest rate is 15% per year, the :B/C ratio is closest to ( (2 ) 0.66 None of the answers 0.91 0.48 Construction equipment has a cost today of $40,000. If its cost has increased only by the inflation rate of 5% per year, when the market interest rate was 10% per year, its cost 10 years cago was closest to 2 (2 ) $24,557 O $22,335 O None of the answers O $15,420

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