ere are three alternatives that must be evaluated using a MAP 1 and 3 can be bought again at the end of their useful lives. R of 10%. Alternatives I First cost $5,300 $10,700 $3,000 Uniform annual benefit 1,800 2,100 1,650 Useful life 4 years 8 years 2 years Salvage value O 200 100 Determine the best alternative using the following methods: a) Internal rate of return b) Payback Answer the following questions: Draw the required cash flows diagrams (8 pts) For each method include: o The decision criteria (4 pts) o Equivalency models (12 pts) o ALL calculations (10 pts) . Choose the best alternative (2 pts) o Explain why both methods gave you the same or different best alternative (2 pt