Two systems are being evaluated to reduce process lead time….
Two systems are being evaluated to reduce process lead time. One of the systems must be selected. An 8-year study period will be used for the analysis. The interest rate is 8% per year. System 1 System 2 First cost, $ 37,000 84,000 Annual O&M, $/year 47,000 61,000 Benefits, $/year 120,000 160,000 Disbenefits, $/year 29,000 0 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for System 1? What is the Benefit-Cost ratio for System 2? Based on a Benefit-Cost analysis, which System should be selected, 1 or 2?