1 Consider the following three mutually exclusive alternatives: 3 B c 4 First Cost ($) 10,000 15,000 20,000 5 Uniform Annual benefit ($) 1,000 1,762 5.100 6 Salvage Value ($) 0 1,500 1,000 7 Useful Life in Years 20 5 8 Assuming that alternatives B and C are replaced with identical units at the end of their useful lives, and an 8% interest rate, which alternative 10 should be selected? Use an annual cash flow analysis in solving this problem. 9