Two ME options are available for selection based on a B/C...
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Two ME options are available for selection based on a B/C analysis. Assume an interest rate of 8% per year and a 15 year period. Option 1 Option 2 Initial costs AED 10,000,000 8.000000 Annual MBO AED per year 1,000,000 500.000 Dent AED per year 3.500.000 2,000,000 Dubent, AED per year 1.000.000 500.000 Select the closest correct answers for the below questions from the answer's options provided. 41.63 1.36 AED 1,368,800 o Option 2 Do Nothing (DN) What is the total annual cost of Option 17 What is the total annual cost of Option 2? What is the B/C ratio of Option 17 What is the B/C ratio of Option 27 What is the incremental B/C (AB/C) ratio between the two options? Which option, if any, should be chosen? AED 2,168,000 Option 1 HAED 1,434,400 1.05 AED 2,086,000
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