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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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