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19. An alternative has the following cash flows: $50,000 per year Benefits Disbenefits $27,000 per year Initial cost $250,000 M&O costs $10,000 per year If the alternative has an infinite life and the interest rate is 10% per year, the B/C ratio is closest to: a. 0.52 b. 0.66 e. 0.91​

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Based on the given benefits and disbenefits as well as the initial and M&O costs, the B/C ratio is close to b. 0.66.

What is the B/C ratio?

First find the present values of the benefits, disbenefits, and M&O costs.

Benefit present value:

= 50,000 / 10%

= $500,000

Disbenefit present value:

= 27,000 / 10%
= $270,000

M&O costs present value:

= 10,000 / 10%

= $100,000

B/C ratio is:

= (500,000 - 270,000) / (250,000 initial cost + 100,000)

= 0.657

= 0.66

Find out more on the Business ratios at https://brainly.com/question/26092288.

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