Evaluation of Alternatives at i=10% per year A B ($) First Cost ($) 20,000 35,000 60,000 Annual O&M ($/year) 6,000 4,000 3,000 Major Repair 0 2,000 after 5 years of opration 5,000 after 10 years of operation Annual revenues ($/year) 10,000 10,500 11,000 life (years) 5 10 15 Salvage ($) 2,000 2,000 2,000 The Modified (B/C) for alternative B, at i=10% per year, is: 3 points Choose The Modified (B/C) for alternative C, at i=10% per year, is: 3 points Choose 4 points The incremental Modified (B/C) of C as challenger and B as defender at i=10% per year is: Choose The incremental IRR of C as challenger and B as defender at is: 4 points Choose Evaluation of Alternatives at i=10% per year A B ($) First Cost ($) 20,000 35,000 60,000 Annual O&M ($/year) 6,000 4,000 3,000 Major Repair 0 2,000 after 5 years of opration 5,000 after 10 years of operation Annual revenues ($/year) 10,000 10,500 11,000 life (years) 5 10 15 Salvage ($) 2,000 2,000 2,000 The Modified (B/C) for alternative B, at i=10% per year, is: 3 points Choose The Modified (B/C) for alternative C, at i=10% per year, is: 3 points Choose 4 points The incremental Modified (B/C) of C as challenger and B as defender at i=10% per year is: Choose The incremental IRR of C as challenger and B as defender at is: 4 points Choose