x.

Solve this problem using the incremental Benefit - Cost ration with, expected life of 10 years and rate of return of 10%

Alternative A

Initial cost $50,000

Annual maintenance cost $4,000

Estimated annual benefit $10,000

Alternative B

Initial cost $30,000

Annual maintenance cost $3,000

Estimated annual benefit $9,000

	a.	Select B with B/C = 1.14
	b.	Select B with B/C = 0.14
	c.	Reject A with B/C = 1.14
	d.	Select A with B/C =1.14