QUESTION 4 The cash flow estimates for two alternatives are given below. At an interest rate of 8% per year, use the incremental B/C ratio (AB/C) method to determine which one should be selected. Alternative 1 Alternative 2 Initial cost, $ 1,200.000 2.000.000 Annual M&O cost, $/year 80.000 75,000 Annual benefits, S/year 520,000 580.000 Annual disbenefits. Slyear 90,000 140,000 Life. years 10 20 Note: For select Alternative, select either 1 or 2. Ans: AB/C = V. Select Alternative