Evaluation of Alternatives at i=10% per year B First Cost ($) Annual O&M (S/year) Major Repair (S) 12,000 20,000 5,000 4,000 2,000 after 5 years of operation 0 45,000 2,000 5,000 after 10 years of operation 8,500 15 2,000 Annual revenues (S/year) life (years) Salvage ($) 7,500 5 2,000 8,000 10 2,000 3 (The annual worth of alternative A is (i=10% per year 3 (The annual worth of alternative B is (i=10% per year L3 (The annual worth of alternative C is (i=10% per year 3 The present worth of alternative A over LCM, at i=10% per year, is L3 :The Rate of Return (IRR) for alternative B is 3 The Rate of Return (IRR) for alternative C is 3 :The Modified (B/C) for alternative B, at i=10% per year, is 3 :The Modified (B/C) for alternative C, at i=10% per year, is 4 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 B First Cost ($) Annual O&M (S/year) Major Repair (S) 12,000 20,000 5,000 4,000 2,000 after 5 years of operation 0 45,000 2,000 5,000 after 10 years of operation 8,500 15 2,000 Annual revenues (S/year) life (years) Salvage ($) 7,500 5 2,000 8,000 10 2,000 3 (The annual worth of alternative A is (i=10% per year 3 (The annual worth of alternative B is (i=10% per year L3 (The annual worth of alternative C is (i=10% per year 3 The present worth of alternative A over LCM, at i=10% per year, is L3 :The Rate of Return (IRR) for alternative B is 3 The Rate of Return (IRR) for alternative C is 3 :The Modified (B/C) for alternative B, at i=10% per year, is 3 :The Modified (B/C) for alternative C, at i=10% per year, is 4 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