Question: The first cost for an alternative is $5,000. The alternative will provide annual benifits of $1,000. To compute the B/C ratio for this alternative, we
The first cost for an alternative is $5,000. The alternative will provide annual benifits of $1,000. To compute the B/C ratio for this alternative, we must NOT:
a) Compute the present value of the annual benifits and then divide this by the first cost
b) Divide the given annual benifit by the given first cost
c) Divide the annual benifits by the annual equivalent of the first cost
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