Six mutually exclusive investments have been identified for evaluation by means of the benefit cost ratio method Assume a MARR of 10 , an equal project life of 25 years for all alternatives, and the data in Table P16 25 (a) Use annual worth and the B C ratio to identify the better alternative (b) I...

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Six mutually exclusive investments have been identified for evaluation by means of the benefit-cost ratio method. Assume

Question:

Six mutually exclusive investments have been identified for evaluation by means of the benefit-cost ratio method. Assume a of 10%, an equal project life of 25 years for all alternatives, and the data in Table P16-25.

(a) Use annual worth and the B/C ratio to identify the better alternative.
(b) If this were a set of independent alternatives, how would you conduct a comparison?

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...