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Each of the 4 alternatives has a useful life of 40 years. If the MARR is 6%, which alternative should be selected? Solve the problem
Each of the 4 alternatives has a useful life of 40 years. If the MARR is 6%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. A B C D Initial cost ($) 9.5k 9.0k 8.4k 7.7k Annual operational cost($) 120 155 200 300 Annual benefit $800 (same for all alternatives) Fill in the blanks:
a) Ratio B/C ALT A
b) Ratio B/C ALT B
c) Ratio B/C ALT C
d) Ratio B/C ALT D
e) Selected alternative
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