Evaluation of Alternatives at i=10% per year c BA 5,000 after 10 years 45,000 25,000 15,000 First Cost ($) 2.000 4,000 5,000 Annual O&M (S/year) 2,000 after 5 years of operation ($) 0 Major Repair of operation 9,500 9.000 Annual revenues ($/year) 8,500 15 10 life (years) 5 2,000 2,000 2,000 Salvage ($) 3 The annual worth of alternative A is (i=10% per year) The annual worth of alternative B is (i=10% per year) The annual worth of alternative C is (i=10% per year) 3 The present worth of alternative A over LCM, at i=10% per year, is 3 :The Rate of Return (IRR) for alternative B is 3 The Rate of Return (IRR) for alternative C is 3 The Modified (B/C) for alternative B, at i=10% per year, is The Modified (B/C) for alternative C, at i=10% per year, is The incremental Modified (B/C) of C as challenger and B as defender at 31-10% per year is 4 The incremental IRR of Cas challenger and B as defender is Evaluation of Alternatives at i=10% per year c BA 5,000 after 10 years 45,000 25,000 15,000 First Cost ($) 2.000 4,000 5,000 Annual O&M (S/year) 2,000 after 5 years of operation ($) 0 Major Repair of operation 9,500 9.000 Annual revenues ($/year) 8,500 15 10 life (years) 5 2,000 2,000 2,000 Salvage ($) 3 The annual worth of alternative A is (i=10% per year) The annual worth of alternative B is (i=10% per year) The annual worth of alternative C is (i=10% per year) 3 The present worth of alternative A over LCM, at i=10% per year, is 3 :The Rate of Return (IRR) for alternative B is 3 The Rate of Return (IRR) for alternative C is 3 The Modified (B/C) for alternative B, at i=10% per year, is The Modified (B/C) for alternative C, at i=10% per year, is The incremental Modified (B/C) of C as challenger and B as defender at 31-10% per year is 4 The incremental IRR of Cas challenger and B as defender is