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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 ? Alternatives

Two cash flows of two independent alternatives are given below at i= 10% per year.Which alternative should be selected based onB/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

A. Both Alternatives

B. Alternative 1

C. Do Nothing

D. Alternative 2

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