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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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