The civic amenities department of the federal government is planning on investing in the drainage system of

Question:

The civic amenities department of the federal government is planning on investing in the drainage system of a new township. Four mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (s are negligible):

If the town's MARR is 12% per year, use the B-C ratio method to determine which proposal is the best.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...