Two renewable energy alternatives are available for providing energy at a remote federal research facility. The cash flow estimates associated with each alternative are given below. Use the...

Extracted text: Two renewable energy alternatives are available for providing energy at a remote federal research facility. The cash flow estimates associated with each alternative are given below. Use the conventional benefit-cost ratio method, with AW as the equivalent-worth measure, to determine which alternative should be selected at an interest rate of 14% per year over a 25- year study period. One alternative must be selected. Alternative I Alternative II Initial cost, $ $1,000,000 $990,000 Annual maintenance, $/year $380,000 $359,500 Annual benefits, $/year $500,000 $459,500 Salvage value, $ $17,000 $15,800 (a) Benefit-cost ratio of incremental cash flow = (b) Choose Alternative