Question: Consider four mutually exclusive alternatives each having an 8-year useful life. The costs and benefits of each are given in the following table: A B

Consider four mutually exclusive alternatives each having an 8-year useful life. The costs and benefits of each are given in the following table:

A B C D

Initial cost 1,000 800 600 500

Uniform annual benefit 122 120 97 122

Salvage value 750 500 500 0

If the minimum acceptable rate of return (MARR) is 8%, then which alternative should be selected using Internal Rate of Return (IRR) method?

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