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PROBLEM 1 A and B are mutually exclusive alternatives with their cash flows shown in Table 1. Select the best alternative using a benefit/cost analysis
PROBLEM 1 A and B are mutually exclusive alternatives with their cash flows shown in Table 1. Select the best alternative using a benefit/cost analysis technique. Use interest rate, i = 10%. TABLE 1 Cash Flow for Alternative A, $ Year Revenue Cost 250,000 | Cash Flow for Alternative B, $ Revenue Cost 270,000 2 3 4 20.000 30,000 6 20,000 80.000 80,000 80,000 80,000 90,000 90,000 90,000 90,000 90.000 90,000 90,000 90,000 80,000 80,000 80,000 80,000 8 30,000 20,000 10
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