Consider three mutually exclusive alternatives with the following cash flows: End-of-year Alternative A Alternative B Alternative C 0 -100 -150 -110 1 - 4 47 66 49 The firms minimum attractive rate of return is 10 percent. Use the benefit-cost ratio method to determine the preferred alternative. i = 10%

(30p) 3. Consider three mutually exclusive alternatives with the following cash flows: End-of-year Alternative A Alternative B Alternative C 0 -100 -150 -110 1-4 66 49 47 The firm's minimum attractive rate of return is 10 percent. Use the benefit-cost ratio method to determine the preferred alternative. i = 10% SINGLE PAYMENT UNIFORM SERIES N F/P P/F F/A P/A 1 1.1000 0.9091 1.0000 0.9091 2 1.2100 0.8264 2.1000 1.7355 1.3310 0.7513 3.3100 2.4869 1.4641 0.6830 4.6410 3.1699 5 1.6105 0.6209 6.1051 3.7908 AF 1.0000 0.4762 0.3021 0.2155 0.1638 AP 1.1000 0.5762 0.4021 0.3155 0.2638 GRADIENT SERIES P/G 4/G 0.0000 0.0000 0.8264 0.4762 2.3291 0.9366 4.3781 1.3812 6.8618 1.8101