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Table 9
Data for Four Mutually Exclusive Alternatives Are Given

Question 9

Multiple Choice

Table 9
Data for four mutually exclusive alternatives are given in the table below. Assume a life of 7 years and a MARR of 9%,
 Alt. A  Alt. B  Alt. C  Alt. D  Do Nothing  Iritial Cost $5,600$3,400$1,200$0 EUAB $1,400$1,000$400$0 Salvage Value $400$0$0$0\begin{array} { | l | l | l | l | l | } \hline & \text { Alt. A } & \text { Alt. B } & \text { Alt. C } & \begin{array} { l } \text { Alt. D } \\\text { Do Nothing }\end{array} \\\hline \text { Iritial Cost } & \$ 5,600 & \$ 3,400 & \$ 1,200 & \$ 0 \\\hline \text { EUAB } & \$ 1,400 & \$ 1,000 & \$ 400 & \$ 0 \\\hline \text { Salvage Value } & \$ 400 & \$ 0 & \$ 0 & \$ 0 \\\hline\end{array}
-The ?B /?C ratio for the first increment, (C-D) is _____________.


A) 1.19
B) 0.84
C) 1.68
D) 1.86

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