Question: Amandaclure engineer is required to compare two count and choose the most economic one BC analysis. The estimated costs and benefits are given below for
Amandaclure engineer is required to compare two count and choose the most economic one BC analysis. The estimated costs and benefits are given below for each equipment. Each equipment has a 10-year uselife with zero salvage value Determine which one should be selected using interest rate of 15 per year Equipment 1 2 Installed costs 110,000 100,000 Operating cost, Slyear 18,000 21,000 Benefits, Slyear 45,000 63,000 Euonent 2 recommended because the incremental Bio between Equipment 1 and 2 is 0.69 Ementas recommended because the incremental B/C ratio between Equipment 2 and 10:31 Equipment is recommended because the incremental B/Craiobetween Equipment 1 and 2 is 178. Forest 2 is recommended because the incremental B/ Ciobetween Equipment and is 13
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