A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows:

For each alternative, the salvage value at the end of-useful-life is zero. At the end of 10 years Alt, A could be replaced by another A with identical cost and benefits. The MARR is 6%. If the analysis period is 20 years, which alternative should be selected?

A B Installed cost Uniform annual benefit Useful life, in years $15,000 $10,000 1,625 $20,000 1.625 1.890 10 20 20