Compute the present value of the annual benefits

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Reference no: EM131887025

The first cost for an alternative is $5,000. The alternative will provide annual benifits of $1,000. To compute the B/C ratio for this alternative, we must NOT:

a) Compute the present value of the annual benefit and then divide this by the first cost

b) Divide the given annual benefit by the given first cost

c) Divide the annual benifits by the annual equivalent of the first cost.

Reference no: EM131887025

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