O$2(8$ POINTS$)$:

Four proposals are available for funding. The capital investment, annual benefits, annual dis$-$benefits and salvage value for each are proposal are given bellow.

$\backslash$table$[[,$P$1,$P$2,$P$3,$P$4,,],[$Capital Investment $($$$),200000,400000,500000,550000,,],[$Annual Benefits $($$$/$Y$),45000,75000,85000,98000,,],[$Annual Dis$-$benefits $($$$/$Y$),15000,18000,12000,22000,,],[$Salvage Value $($Y$),50000,60000,75000,85000,,],[,,,,,,],[$B$/$C$,,,,,,],[$Accept or reject?,,,,,,$]]$

Assume that all proposals have $30$ years expected life and MARR $=12\%$ per year.

$($a$)$ Calculate $\frac{B}{C}$ for each alternative and determine if it is acceptable or rejected in the table above?

$($b$)$ Select the best proposal using the Incremental B$/$C Method.

Show your calculations.