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Three systems are being considered for a manufacturing plant. The estimated benefits and costs expected to be derived from the three alternatives under consideration are

Three systems are being considered for a manufacturing plant. The estimated benefits and costs expected to be derived from the three alternatives under consideration are listed as follows:

Countermeasure

Alternative 1

Alternative 2

Alternative 3

Initial Cost

$ 5,500,000

$ 6,000,000

$ 7,500,000

Annual Revenue

$ 1,500,000

$ 1,750,000

$ 2,000,000

Annual Maintenance Costs

$ 125,000

$ 175,000

$ 225,000

Annual Utility Costs

$ 175,000

$ 225,000

$ 275,000

Annual Labor Expenses

$ 150,000

$ 200,000

$ 250,000

The interest rate is 10%, and the life of each project is estimated to be 10 years. Select the best alternative, according to BC(i)

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