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Problem 1: Four design alternatives were proposed. Each design alternative has unique costs and benefits. Given the information for the four mutually exclusive in the
Problem 1: Four design alternatives were proposed. Each design alternative has unique costs and benefits. Given the information for the four mutually exclusive in the table below, recommend the best alternative using the incremental B/C ratio analysis method knowing that the MARR is 6%. (Use the PW in your calculation) 2 11000 3 12500 4 16800 480 450 140 Alternative 1 Capital 12500 investment cost $ Annual operating 120 and maintenance cost $ Annual utility 580 savings $ Annual revenue $ 700 Annual other 400 benefit $ Project life in 40 years 700 950 1300 550 750 200 150 250 500 40 40 40
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