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The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on
The two ME alternatives shown are under consideration for facility improvements in a company in Abu Dhabi. Determine which one should be selected based on a B/C analysis. Assume an interest rate of 10% per year and a 5-year study period. First costs, AED Annual M&O costs, AED per year Alternative X 50,000 50,000 Alternative Y 90,000 20,000 Benefits, AED per year Disbenefits, AED per year 100,000 30,000 150,000 10,000 Match the closest correct answers for the below questions: What is the total annual cost of Alternative X? A 1.107 . What is the total annual cost of Alternative Y 8.3.2 What is the B/C ratio of Alternative X? C. 43,742 AED What is the B/C ratio of Alternative 77 D.DO NOTHING (DN) . What is the incremental B/C (AB/C) ratio between the two alternatives, X E. 63,190 AED and Y? F. Alternative Y Which alternative, if any, should be chosen? G..0.59 Activate Windows Go to Settings to activate Windos H.-3.6
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