Question

Consider the following financial data: Project A Project B Initial Cost $5422 $15179 Annual Benefit $2331...

Consider the following financial data:

Project A

Project B

Initial Cost

$5422

$15179

Annual Benefit

$2331

$5694

Annual Maintenance Costs

$1092

$2372

Project Life

10 years

15 years

Using a MARR of 8%, what is the incremental benefit-cost (B/C) ratio for projects A and B?

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