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Consider the data for the following two alternatives, Alpha and Omega. Use the benefit-to-cost ratio method to work out the problem. MARR = 8% Alternative

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Consider the data for the following two alternatives, Alpha and 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 Dis-benefits Life in years 100,000 120,000 30,000 25,000 5 10 Reason B/C = (EW of net benefits/EW of initial costs + EW of operating costs) EW - Equivalent Worth Determine the B/C ratio for Alpha

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