Consider four mutually exclusive alternatives:

The analysis period is 8 years. At the end of 2, 4, and 6 years Alt A will have an identical replacement. Alternative B will have a single identical replacement at the end of 4 years. Over what range of values of MARR is Alt. B the preferred alternative?

A B D Initial cost Uniform annual benefit Useful life, in years $770.00 $1406.30 $2563.30 420.00 420.00 420.00 4 Computed rate of return 6.4% 6.0% 7.5%