The agency is planning an on-site laboratory to shift away from sending samples out of state for diagnostic testing to reduce processing time and realize potential cost savings and increased revenues. The investment, revenue, operation and maintenance costs, and salvage values for the current process and two laboratory alternatives are detailed in the table below. The MARR is 10%.

Use the benefit-cost ratio technique to determine which option to select. Explain your selection.

Investment Cost Annual Revenue Current Alternative 1 $150,000 $40,000 $60,000 $70,000 $37,000 $50,000 1010 Alternative 2 $200,000 $100,000 $69,000 $60,000 Annual Costs Salvage value Useful life