Question: Answer the following questions below using the 1st table that describes the B/C Details. Ensure to include your steps. Alphas benefit/cost (B/C) ratio. Gammas benefit/cost

 Answer the following questions below using the 1st table that describes

Answer the following questions below using the 1st table that describes the B/C Details. Ensure to include your steps.

  1. Alphas benefit/cost (B/C) ratio.

  2. Gammas benefit/cost (B/C) ratio.

  3. Is the Alpha pump better than the Beta pump based on the incremental B/C ratio?

  4. Is the Beta pump better than the Gamma pump based on the incremental B/C ratio?

the B/C Details. Ensure to include your steps. Alphas benefit/cost (B/C) ratio.

  1. Alphas benefit/cost (B/C) ratio.

  2. Gammas benefit/cost (B/C) ratio.

  3. Is the Alpha pump better than the Beta pump based on the incremental B/C ratio?

  4. Is the Beta pump better than the Gamma pump based on the incremental B/C ratio?

. Sabino Company is considering the purchase of a new heavy-duty industrial waste-water pump. Suppliers and experts have been consulted and the choice has been narrowed down to three pump models: Alpha, Beta and Gamma. The key parameters of the three pump models are shown below. Alpha Beta Gamma Parameters 1. Initial Cost 330,000 365,000 415,000 280,000 at EOY1 360,000 at EOY1 450,000 at EOY1 increasing 2. Revenues decreasing increasing ($) annually annually annually thereafter thereafter by thereafter by 2% by 1.0% $10,000 190,000 at 230,000 at EOY1 EOY1 3. Operating increasing increasing 312,000 at EOY1 costs annually annually increasing annually ($) thereafter by thereafter by thereafter by $20,000 $2,400 3% 4. End-of-life salvage 10,000 -15,000 10,000 value ($) 5. Useful life 5 5 10 (years) All pump names and parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% . . . DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST i% = 0.1000 k% E 0.1200 n (FIPi%,n) [ (PIFi%,n) (AP,i%,n) (PIA,i%,n) [ (AFi%,n) (FIA,i%,n) (AG,i%,n) [ (PIG,i%,n) FG,i%,n) (P/C.i.k.N) i=k 1 1.1000 0.9091 1.0000 0.0000 0.9091 0.0000 1.0000 2 2.1000 PcjkN j#k 0.9091 1.8347 2.7772 3.7367 1.8182 3 3.3100 4 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 0.0000 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 5 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 4.7138 6 3.1000 6.4100 11.0510 17.1561 24.8717 34.3589 45.7948 5.7086 7 8 2.7273 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 2.1436 0.1874 6.7215 7.7528 8.8028 0.0874 9 2.3579 0.1736 0.0736 10 2.5937 11 0.0627 0.0540 0.0468 2.8531 16.0287 19.4215 22.8913 26.3963 29.9012 3.7255 4.0641 4.3884 12 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 40.5447 45.5992 51.1591 57.2750 13 14 0.2633 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 4.6988 4.9955 5.2789 15 33.3772 36.8005 40.1520 0.2394 59.3742 75.3117 93.8428 115.2271 139.7498 167.7248 199.4973 235.4470 275.9917 321.5909 372.7500 9.8719 10.9605 12.0689 13.1974 14.3465 15.5164 16.7076 17.9205 19.1554 20.4128 21.6930 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 16 0.2176 0.1978 0.1799 0.1635 0.1486 17 18 11.8182 12.7273 13.6364 14.5455 15.4545 16.3636 17.2727 18.1818 5.5493 5.8071 6.0526 6.2861 6.5081 43.4164 46.5819 49.6395 52.5827 55.4069 19 6.1159 6.7275 20 . Sabino Company is considering the purchase of a new heavy-duty industrial waste-water pump. Suppliers and experts have been consulted and the choice has been narrowed down to three pump models: Alpha, Beta and Gamma. The key parameters of the three pump models are shown below. Alpha Beta Gamma Parameters 1. Initial Cost 330,000 365,000 415,000 280,000 at EOY1 360,000 at EOY1 450,000 at EOY1 increasing 2. Revenues decreasing increasing ($) annually annually annually thereafter thereafter by thereafter by 2% by 1.0% $10,000 190,000 at 230,000 at EOY1 EOY1 3. Operating increasing increasing 312,000 at EOY1 costs annually annually increasing annually ($) thereafter by thereafter by thereafter by $20,000 $2,400 3% 4. End-of-life salvage 10,000 -15,000 10,000 value ($) 5. Useful life 5 5 10 (years) All pump names and parameter values are fictitious. EOY = End-of-year Industry Standard = 3 years MARR = 10% . . . DISCRETE CASH FLOWS AND DISCRETE COMPOUNDING 10.00 % DISCRETE RATE OF INTEREST i% = 0.1000 k% E 0.1200 n (FIPi%,n) [ (PIFi%,n) (AP,i%,n) (PIA,i%,n) [ (AFi%,n) (FIA,i%,n) (AG,i%,n) [ (PIG,i%,n) FG,i%,n) (P/C.i.k.N) i=k 1 1.1000 0.9091 1.0000 0.0000 0.9091 0.0000 1.0000 2 2.1000 PcjkN j#k 0.9091 1.8347 2.7772 3.7367 1.8182 3 3.3100 4 1.2100 1.3310 1.4641 1.6105 1.7716 1.9487 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 1.0000 0.4762 0.3021 0.2155 0.1638 0.1296 0.1054 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 0.0000 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 5 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 4.7138 6 3.1000 6.4100 11.0510 17.1561 24.8717 34.3589 45.7948 5.7086 7 8 2.7273 3.6364 4.5455 5.4545 6.3636 7.2727 8.1818 9.0909 10.0000 10.9091 2.1436 0.1874 6.7215 7.7528 8.8028 0.0874 9 2.3579 0.1736 0.0736 10 2.5937 11 0.0627 0.0540 0.0468 2.8531 16.0287 19.4215 22.8913 26.3963 29.9012 3.7255 4.0641 4.3884 12 4.6410 6.1051 7.7156 9.4872 11.4359 13.5795 15.9374 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 40.5447 45.5992 51.1591 57.2750 13 14 0.2633 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 4.6988 4.9955 5.2789 15 33.3772 36.8005 40.1520 0.2394 59.3742 75.3117 93.8428 115.2271 139.7498 167.7248 199.4973 235.4470 275.9917 321.5909 372.7500 9.8719 10.9605 12.0689 13.1974 14.3465 15.5164 16.7076 17.9205 19.1554 20.4128 21.6930 0.0408 0.0357 0.0315 0.0278 0.0247 0.0219 0.0195 0.0175 16 0.2176 0.1978 0.1799 0.1635 0.1486 17 18 11.8182 12.7273 13.6364 14.5455 15.4545 16.3636 17.2727 18.1818 5.5493 5.8071 6.0526 6.2861 6.5081 43.4164 46.5819 49.6395 52.5827 55.4069 19 6.1159 6.7275 20

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