Determine whichone(s) should be selectedbased on a B/C analysis using an interest rate of7% per yearand a 10-year study period. Assume independent projects and no budget limit.

Note:Choose the correct B/C Ratio for each alternative

Alternative 1 Alternative 2 Alternative 3 Alternative4 Initial cost, $ 50,000 95,000 110,000 75,000

M&O Cost, $/year 40,000 64,000 35,000 30,000 Benefits, $/year 120,000 180,000 76,000 52,000 Disbenefits, $/year 30,000 35,000 28,000 14,000

1.91 1.91 1.91 1.91

0.75 0.75 0.75 0.75

1.87 1.87 1.87 1.87

0.93 0.93 0.93 0.93

B/C Ratio 1.12 1.12 1.12 1.12

1.54 1.54 1.54 1.54

1.82 1.82 1.82 1.82

0.95 0.95 0.95 0.95

YES YES YES YES

NO NO NO NO

Note:Choose the correct B/C Ratio for each alternative