| Question |
Answer the following questions. (a) Use the conventional B/C ratio to evaluate the alternatives and make a recommendation. (b) Use the modified B/C ratio to evaluate the alternatives and make a recommendation. (c) Use a present worth analysis to evaluate the alternatives and make a recommendation. (d) Use an analysis to evaluate the alternatives and make a recommendation. (e) Use the simple payback period to evaluate the alternatives and make a recommendation. A B C Initial investment $9500 $18,500 $22,000 Annual savings 3200 5,000 9,800 Annual costs 1000 2,750 6,400 6000 4,200 14,000 Project life, in years 15 15 15 MARR 12% 12% 12% |
