PLEASE JUST SHOW how B/C and delta B/C ratio was calculated for ONE of the options !!!!

3. Cheech Marin is evaluating the following trucks for his balloon delivery service. His MARR is 9%. EUAC, $ i = 9% Initial Option Cost, $ GMC 25,000 Ford 30,000 Volvo 35,000 Dodge 40,000 6,427 5,961 5,143 5,343 Annual Cost, $ 1000 1750 1150 1400 Useful Life, years 5 7 11 13 Given the information shown and using a B/C (AB/C) evaluation, which truck should he purchase? Remember: Show all work to receive credit and reviewability counts Volvo Answer: EUAC, $ BIC i = 9% Initial Option Cost, $ GMC 25,000 Ford 30,000 Volvo 35,000 Dodge 40,000 6,427 5,961 5,143 5,343 Annual Benefit, $ 8750 7500 7300 7700 Annual Cost, $ 1000 1750 1150 1400 Useful Life, years 5 7 11 1.18 0.97 1.16 1.14 Economically Viable ? Yes No Yes Yes 13 A B/C Action A Annual A Annual Option A EUAC, $ Benefit, $ Cost, $ Volvo - GMCI -1,284 -1450 150 Dod - Volvo 200 400 250 1.28 Accept Challenger 0.89 Keep Defender