Question: A public utility is considering the following 3 mutually exclusive alternatives to supplying water for a small town: Item Alt A Alt B Alt C

A public utility is considering the following 3 mutually exclusive alternatives

A public utility is considering the following 3 mutually exclusive alternatives to supplying water for a small town: Item Alt A Alt B Alt C Initial cost $ 240,000 350,000 650,000 Maintenance $/yr 8,000 12,000 7,000 Sales $/yr 80,000 200,000 180,000 Life (yrs) 9 12 Infinite Determine the best alternative using the incremental benefit cost ratio method. The rate is 6% per year. A public utility is considering the following 3 mutually exclusive alternatives to supplying water for a small town: Item Alt A Alt B Alt C Initial cost $ 240,000 350,000 650,000 Maintenance $/yr 8,000 12,000 7,000 Sales $/yr 80,000 200,000 180,000 Life (yrs) 9 12 Infinite Determine the best alternative using the incremental benefit cost ratio method. The rate is 6% per year

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