Determine which of the following alternatives is the most efficient and which is the most profitable using the incremental Benefit/Cost ratio method. Rate is 5% per year. Life years Benefits $/yr Salvage $ 100,000 180,000 300,000 350,000 Construction $ 300,000 320,000 380,000 A 1,000,000 1,800,000 3,000,000 9 17 C 25 3,500,000 340,000 40

ENGR.ECONOMIC ANALYSIS
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Þetermine which of the following alternatives is the most efficient and which is the most profitable
using the incremental Benefit/Cost ratio method. Rate is 5% per year.
Construction $
Benefits $/yr Salvage $
Life years
300,000
320,000
380,000
340,000
A
1,000,000
1,800,000
3,000,000
3,500,000
100,000
180,000
300,000
350,000
9
B
17
25
40
Transcribed Image Text:Þetermine which of the following alternatives is the most efficient and which is the most profitable using the incremental Benefit/Cost ratio method. Rate is 5% per year. Construction $ Benefits $/yr Salvage $ Life years 300,000 320,000 380,000 340,000 A 1,000,000 1,800,000 3,000,000 3,500,000 100,000 180,000 300,000 350,000 9 B 17 25 40
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