Given the cash flows and information below, perform an B/C ratio analysis. Assume an MARR of 7% and a life of 10 years. Which alternative do you choose? A B с Initial Cost $ 20,007 $ 11,500 $ 19,300 $ Benefit/Year $ 3,971 $ 2,440 $2,880 $ PW of Benefit $ 27,891 $ 17,138 $ 20,228 $ B/C 1.39 1.49 1.05 B/C A-D 1.04 B-A B/C 1.26 B D C None of the above / listed. B-D 1.63 C-A 10.84 C-D -0.46 C-B 0.40 D 14,700 3,184 22,363 1.52 D-B 1.63 B-C 0.40
Given the cash flows and information below, perform an B/C ratio analysis. Assume an MARR of 7% and a life of 10 years. Which alternative do you choose? A B с Initial Cost $ 20,007 $ 11,500 $ 19,300 $ Benefit/Year $ 3,971 $ 2,440 $2,880 $ PW of Benefit $ 27,891 $ 17,138 $ 20,228 $ B/C 1.39 1.49 1.05 B/C A-D 1.04 B-A B/C 1.26 B D C None of the above / listed. B-D 1.63 C-A 10.84 C-D -0.46 C-B 0.40 D 14,700 3,184 22,363 1.52 D-B 1.63 B-C 0.40
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Given the cash flows and information below, perform an B/C ratio analysis. Assume
an MARR of 7% and a life of 10 years. Which alternative do you choose?
A
B
$ 20,007 $ 11,500 $
Initial Cost
Benefit/Year
$ 3,971 $ 2,440 $
PW of Benefit $ 27,891 $ 17,138 $
B/C
1.39
1.49
O O O O O
B
B/C
A
B/C
A-D
1.04
B-A
1.26
None of the above / listed.
B-D
1.63
C-A
10.84
с
D
19,300 $ 14,700
2,880 $ 3,184
20,228 $
22,363
1.05
C-D
-0.46
C-B
0.40
1.52
D-B
1.63
B-C
0.40
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