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QUESTION 4 15 points sa Federal Electricity & Water Authority (FEWA) has two renewal energy alternatives are available for providing energy at a remote government
QUESTION 4 15 points sa Federal Electricity & Water Authority (FEWA) has two renewal energy alternatives are available for providing energy at a remote government research facility. The cash flow estimates associated with each alternative are given below. Use the conventional B-C ratio method, with Annual Worth as the equivalent worth measure to determine which alternative should be selected at an interest rate of 10% per year over a 25-year study period. One alternative must be selecte Alternative $1,000,000 Alternative II $990,000 Initial cost, $ Annual maintenance costs, $/yr Annual benefits, $/yr Salvage value, $ $380,000 $500,000 $17,000 $359,500 $459,500 $15,800 A. 1.02 Benefit Cost ratio for Alterative 1: Benefit Cost ratio for Alternative II: B. 1.06 - - Incremental Benefit Cost Ratio C.0.231 D. Alternative! E. Alternative 11 Alternative selected
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