5. The following two alternatives are mutually exclusive. (a) Use rate of return analysis to decide which one will you select if your MARR is 14% per year? (b) Graph interest rate vs. present value for both option 1 and 2. ) Discuss how your selection between option 1 and 2 will change when MARR is changed and at which interest rate the two options are the same economically. Alternative Life, | years Initial Cost $42,000 $45,000 Option 1 Option 2 Annual Benefit $10,000 $11,500 Salvage Value $4,000 $4,200 4 6 5. The following two alternatives are mutually exclusive. (a) Use rate of return analysis to decide which one will you select if your MARR is 14% per year? (b) Graph interest rate vs. present value for both option 1 and 2. ) Discuss how your selection between option 1 and 2 will change when MARR is changed and at which interest rate the two options are the same economically. Alternative Life, | years Initial Cost $42,000 $45,000 Option 1 Option 2 Annual Benefit $10,000 $11,500 Salvage Value $4,000 $4,200 4 6