Consider four mutually exclusive alternatives:

Project A ($) Project B ($) Project C ($) Project D ($)

Cost 75,000 50,000 15,000 90,000

Power savings 18,800 13,900 4,500 23,800

Each alternative has a 5-year useful life and no salvage value. The interest rate is 10%. Which alternative should be selected based on:

a) Payback period

b) Future worth analysis

c) Benefit-cost ratio

d) If answers in parts a, b, and c differ, explain why this is the case.

Consider four mutually exclusive alternatives: Project A ($) Project B ($) Project C($) Cost 75,000 50,000 15,000 Power savings 18,800 13,900 4,500 Project D ($) 90,000 23,800 Each alternative has a 5-year useful life and no salvage value. The interest rate is 10%. Which alternative should be selected based on: a) Payback period b) Future worth analysis c) Benefit-cost ratio d) If answers in parts a, b, and c differ, explain why this is the case