Alt X | PV @ 10% | Alt Y | PV @ 10% | |
First Cost | 40000 | -40000 | 90000 | -90000 |
O&M Cost | 50000 | -1,89,539.34 | 20000 | -75,815.74 |
Benefits | 120000 | 1,13,723.60 | 150000 | 5,68,618.02 |
Disbenefits | 30000 | -1,13,723.60 | 10000 | -37,907.87 |
Life | 5 | 5 | ||
Total Benefits | 1,13,723.60 | 5,68,618.02 | ||
Total Costs | -3,43,262.94 | -203723.60 | ||
BC Ratio | 0.33130172 | 2.791124871 | ||
PV Annuity Factor | 3.7908 | 3.7908 | ||
Annual Total Cost | -90551.89923 | -53741.77327 |
a) Total Annual cost of Alternative X is -90551.90
b) Total Annual cost of Alternative Y is -50741.77
c) BC Ratio of X is 0.3313
d) BC Ratio of Y is 2.7911
e) Incremental BC Ratio is 0.815
Alt X | Alt Y | Incremental | PV @ 10% | |
First Cost | 40000 | 90000 | -50000 | -50000 |
O&M Cost | 50000 | 20000 | 30000 | 1,13,723.60 |
Benefits | 120000 | 150000 | -30000 | -1,13,723.60 |
Disbenefits | 30000 | 10000 | 20000 | 75,815.74 |
Life | 5 | 5 | ||
Incremental Benefits | -1,13,723.60 | |||
Incremental Costs | 1,39,539.34 | |||
BC Ratio | 0.814993136 |
f) The incremental ratio is less than 1 so Alternative X should be discarded and Y should be chosen.
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