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Using the Benefit Cost Ratio, choose the best alternative among the following three mutually exclusive alternatives. In addition, there is no Do-Nothing option in this
Using the Benefit Cost Ratio, choose the best alternative among the following three mutually exclusive alternatives. In addition, there is no Do-Nothing option in this instance. The cash flow table is as shown below. Use a MARR = 10%. Alternatives Item Alt A Alt B Alt C Initial Cost $5,000 $10,000 $8,000 Benefits - Year 1 $1,500 $4,000 $2,500 Benefits - Year 2 $1,000 $4,000 $2,500 Benefits - Year 3 $500 $4,000 $2,500 Benefits - Year 4 $2,000 $3,000 $2,500 Salvage - Year 4 -$3,000 -$2,000 $0
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