Question: 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 . If

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.

Useful Calculated Rate Life Alternative Annual Benefit of Return (vears) S100 at end of first A 10 10.0% Per year therea

If the MARR is 8%, which alternative should be selected? (Answer: Alt. C)

Useful Calculated Rate Life Alternative Annual Benefit of Return (vears) S100 at end of first A 10 10.0% Per year thereafter $10 at end of first 10 8.8% Year, increasing$50 Annual end-of-year 10 15.0% Benefit= $260 $450at end of first 10 18.1% Year; declining$50 Per year thereafter

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