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Two cash flows of two independent alternatives are given below at i= 10% per year. Which alternative should be selected based on B/C analysis ?
Two cash flows of two independent alternatives are given below at i= 10% per year. Which alternative should be selected based on B/C analysis?
Alternatives | Alternative 1 | Alternative 2 |
First cost, $ | 50,000 | 35,000 |
Annual maintenance cost, $/year | 3,500 | 4,500 |
Benefits, $/year | 18,000 | 13,000 |
Disbenefits, $/year | 5,500 | 1,500 |
Life, years | 10 | 10 |
Both Alternatives | ||
Alternative 1 | ||
Do Nothing | ||
Alternative 2 |
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