In a particular situation, four mutually exclusive alternatives are being considered. Each of the alternatives costs $1300 and has no end-of-useful-life salvage value.

IT the MARR is 8%, which alternative should be selected?

Usefu Calcnlated Life Rate Alternative Annual Benefit (years) of Return $100 a end of first year; increasing $30 per year thereafter $10 at end of first year; increasing $50 per year thereafter Annual end-of-year 10 benefit - $260 $450 at end of first ycar, declining $50 per year thereafter 10 10.0% 8.8% 5.0% 10 18.1%