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part b use incremental analysis and b/ c 2. Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%. Initial Cost
part b use incremental analysis and b/c
2. Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%. Initial Cost A $35,000.00 $4,200.00 B $21,000.00 $3,300.00 $1,000 $42.000.00 $5,000.00 Annual Benefit Salvage value Project life 0 1500 Forever 20 year 50 a. Calculate the Benefit Cost ratio of each project 0, b. Which of the 3 alternatives should be selected using B/C ratio analysis (show your work)? Alternative Selected 2. Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%. Initial Cost A $35,000.00 $4,200.00 B $21,000.00 $3,300.00 $1,000 $42.000.00 $5,000.00 Annual Benefit Salvage value Project life 0 1500 Forever 20 year 50 a. Calculate the Benefit Cost ratio of each project 0, b. Which of the 3 alternatives should be selected using B/C ratio analysis (show your work)? Alternative SelectedStep by Step Solution
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