Question: 1. Data for two mutually exclusive alternatives are given below Alternatives Initial Cost Annual Benefits (beginning at end of $1,000S600 year 1) Annual Costs (beginning

1. Data for two mutually exclusive alternatives are given below Alternatives

1. Data for two mutually exclusive alternatives are given below Alternatives Initial Cost Annual Benefits (beginning at end of $1,000S600 year 1) Annual Costs (beginning at end of S300 year 1) Salvage Value Useful Life (years) $4,000 $3,000 $100 $500 10 Compute the net present worth for each alternative and choose the better alternative. Which alternative would you choose? MARR = 7%

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