Evaluation of Alternatives at i=10% per year BA 5,000 after 10 years 45,000 20,000 12,000 First Cost () 2,000 4,000 5,000 Annual O&M (S/year) 2,000 after 5 years of operation (S) 0 Major Repair of operation 8,500 8,000 Annual revenues (S/year) 7,500 15 10 life (years) 5 2,000 2,000 2,000 Salvage (S) :The present worth of alternative A over LCM, at i=10% per year, is :The Rate of Return (IRR) for alternative B is :The Rate of Return (IRR) for alternative C is :The Modified (B/C) for alternative B. at i=10% per year, is :The Modified (B/C) for alternative C, at i=10% per year, is 0.96 The incremental Modified (B/C) of C as challenger and B as defender at :i=10% per year is :The incremental IRR of C as challenger and B as defender is Evaluation of Alternatives at i=10% per year BA 5,000 after 10 years 45,000 20,000 12,000 First Cost () 2,000 4,000 5,000 Annual O&M (S/year) 2,000 after 5 years of operation (S) 0 Major Repair of operation 8,500 8,000 Annual revenues (S/year) 7,500 15 10 life (years) 5 2,000 2,000 2,000 Salvage (S) :The present worth of alternative A over LCM, at i=10% per year, is :The Rate of Return (IRR) for alternative B is :The Rate of Return (IRR) for alternative C is :The Modified (B/C) for alternative B. at i=10% per year, is :The Modified (B/C) for alternative C, at i=10% per year, is 0.96 The incremental Modified (B/C) of C as challenger and B as defender at :i=10% per year is :The incremental IRR of C as challenger and B as defender is