The below two ME alternatives are under consideration for a governmental project in UAE Determine which one should be we
Posted: Mon May 02, 2022 7:48 am
The below two ME alternatives are under consideration for a governmental project in UAE Determine which one should be wees interest rate of 10% per year and a 5.year study period First Cost AED Annual M&O AED/Year Benefits AED per year Disbenefits AED per year Alternate A 100,000 40,000 140,000 30,000 Alternate B 120,000 35,000 180,000 20,000 1. What is the total annual cost of Alternative X? (2 marks) 2. What is the total annual cost of Alternative Y? (2 marks) What is the B/C ratio of Alternative X? (3 marks) What is the B/C ratio of Alternative Y? (3 marks) What is the incremental B/C (AB/C) ratio between the two alternatives, X and Y? (3 marks) (2 marks) Which alternative, if any, should be chosen? msi