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Need help with test corrections. Thank you! Problem 7. (15 points) Use incremental Benefit - Cost Ratio (B/C Method) to determine which mutually exclusive project
Need help with test corrections. Thank you!
Problem 7. (15 points) Use incremental Benefit - Cost Ratio (B/C Method) to determine which mutually exclusive project should be selected. The study period is 3 years and MARR-12% Do nothing is Naran option. Alternative A Alternative B Alternative C First cost Annual revenues Annual costs Salvage value (End of 3 Years) $11,000 4,000 200 5,000 $15,000 6,500 600 4,500 $13,000 5,500 500 3,000 Benefit- Cost Ratio 1.15 1.14 (a) Calculate Benefit-Cost Ratio for Alternative C (5 points) Guu 3 (b) Determine which project.should be selected (10 points): PikB lo l CStep by Step Solution
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