Question: 1. Compare the following 3 altrernatives using the Incremental Benefit/Cost Ratio method. Consider the salvage value as a cost (i.e., put in denominator). i = %3
|
Alt.
|
Construction cost $
|
Bnefit ($/yr)
|
Salvage $
|
Service Life (yrs)
|
|
A
|
365,000
|
100,000
|
45,000
|
7
|
|
B
|
400,000
|
120,000
|
23,500
|
8
|
|
C
|
800,000
|
140,000
|
75,000
|
9
|