Federal Electricity & Water Authority (FEWA) has two renewal energy alternatives are available for providing energy at a remote government research facility. The cash flow estimates associated with each alternative are given below. Use the conventional B-C ratio method, with Annual Worth as the equivalent-worth measure, to determine which alternative should be selected at an interest rate of 10% per year over a 25-year study period. One alternative must be selected.

	Alternative I	Alternative II
Initial cost, $	$1,000,000	$990,000
Annual maintenance costs, $/yr	$380,000	$359,500
Annual benefits, $/yr	$500,000	$459,500
Salvage value, $	$17,000	$15,800

-A.B.C.D.E.F.G.H.	Benefit Cost ratio for Alternative 1:
-A.B.C.D.E.F.G.H.	Benefit Cost ratio for Alternative II:
-A.B.C.D.E.F.G.H.	Incremental Benefit Cost Ratio
-A.B.C.D.E.F.G.H.	Alternative selected

A.	1.02
B.	1.06
C.	0.231
D.	Alternative I
E.	Alternative II
F.	1.60
G.	1.20
H.	0.30