5. Two alternatives are under consideration for providing energy at a remote research station, one of which must be selected: geothermal and solar. The benefits and costs associated with each alternative are shown. Use the B/C method to determine whic should be selected at an interest rate of 6% per year over a 20-year study period. Geothermal Solar

5. Two alternatives are under consideration for providing energy at a remote research station, one of which must be selected: geothermal and solar. The benefits and costs associated with each alternative are shown. Use the B/C method to determine whic should be selected at an interest rate of 6% per year over a 20-year study period. Geothermal Solar

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7.43 Five mutually exclusive, direct benefit alternatives are compared using the B/C method. The alternative to select is: a. J b. K c. L d. M Alternative J K LMN Total Investment, $ million 20 25 33 45 49 Overall B/C Ratio AB/C When Compared to Alternative JK L M N 1.02 1.18 1.20 1.12 1.42 0.98 0.89 0.72 0.80 0.08 0.94 0.84 0.89 0.76 1.32 -
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