For the data presented below on alternatives A and B and assuming a 10% interest rate, determine which alternative should be recommended using the following methods. Alternative A can be bought again at the end of its useful life. (40 points)

	A	B
First cost	$5,300	$10,700
Uniform annual benefit	1,800	2,100
Useful life	4 years	8 years
Salvage value	0	200

On the manual solution,

• Draw the required cash flow diagrams

And make sure you include the following for ALL methods:

• What is the decision criteria?
• Present the required equivalency models.
• Show ALL calculations to choose the best alternative.
• What is the best alternative?

Using the payback method:
Using the benefit-cost ratio method:
Using the internal rate of return method: