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10. The cash flows, the rate of returns and the benefit/cost ratios for three different...

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10. The cash flows, the rate of returns and the benefit/cost ratios for three different alternatives A, B and C are in the table. If the desirable MARR is 10%. Alt. A Alt.8 Alt. 5,000 $9,000 $7,500 Initial cost Annual benefits $1,457 $2,518 $2.155 5 14% B/C @ MARR 1.10 1.06 1.08 Life in years ROR 13% a) (15 pts) Using the rate of return method, select the best alternative b) (15 pts) Using the benefit cost ratio method, select the best alternative

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