Given the cash flows and information below, perform an B/C ratio analysis. Assumean MARR of 7% and a life of 10 years. Which alternative do you choose?AB$ 20,007 $ 11,500 $Initial CostBenefit/Year$ 3,971 $ 2,440 $PW of Benefit $ 27,891 $ 17,138 $B/C1.391.49O O O O OBB/CAB/CA-D1.04B-A1.26None of the above / listed.B-D1.63C-A10.84сD19,300 $ 14,7002,880 $ 3,18420,228 $22,3631.05C-D-0.46C-B0.401.52D-B1.63B-C0.40

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

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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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