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Consider the data for the following two alternatives, Alpha & Omega. Use the benefit-to-cost ratio method to work out the problem. MARR = 8% Alternative
Consider the data for the following two alternatives, Alpha & Omega. Use the benefit-to-cost ratio method to work out the problem. MARR = 8% Alternative Alpha Omega First cost $100,000 140,000 Operating costs/year 50,000 60,000 Benefits/year 100,000 120,000 Dis-benefits 30,000 25,000 Life in years 5 10 Ratio B/C = (EW of net benefits) / (EW of initial costs + EW of operating costs) EW - Equivalent Worth Determine the B/C ratio for Omega. Provide a result with two decimal places (for example 3.45, 0.85)
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