Question: Best Flight Inc., is considering three mutually exclusive alternatives for implementing a sustainable automotive program. Each alternative meets the same service requirements, but differences in

Best Flight Inc., is considering three mutually exclusive alternatives for implementing a
sustainable automotive program. Each alternative meets the same service requirements, but
differences in capital costs and benefits (cost savings) exist among them. The study period is
10 years. The annual interest rate is 10%. Which alternative should be selected in view of
the following estimates? (10 Points)
Alternative
A B C
Capital Cost $390,000 $920,000 $660,000
Annual Cost Savings 69,000167,000133,500

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