Two alternatives have been proposed for a government project. The estimated costs associated with each alternative are given below. Use the modified B- C ratio method, with AW as the equivalent- worth measure, to determine which alternative should be selected at an interest rate of 3% per year.
Initial cost, $ Annualmaintenance, $/yr Annual benefits, $/yr Salvage value, $ Projectlife, years Alternative I $1,250,000$180,000$550,000$11,00028 Alternative II $1,050,000$125,000$540,000$980028 Iritialcogt, $ Arrualmaintenance, $/yr Arrualberefitg, $/yr 5alvage value, $ Project life, yearg Alternative I $1,250,000$180,000$550,000$11,00028 Alternative II $1,050,000$125,000$540,000$980028 itial cost, $ nnual maintenance, $/yr nnual benefits, $/yr lvage value, $ oject life. vears Alternative I$1,250,000$180,000$550,000$11,00028 Alternative II$1,050,000$125,000$540,000$980028
Definitions:
Prototype
An example of a concept that closely matches the defining characteristics of the concept.
Vehicle
A means of transporting goods or individuals from one location to another, such as cars, bikes, and buses.
Glider
A type of aircraft that is designed to fly without the use of engines, relying on dynamic lift from air currents to stay aloft.
Fruit
The ripened ovary, along with its seeds, of a flowering plant, usually eaten as food.