Question: The alternatives listed below are compared using the annual worth criterion. With an annual interest rate of 10%, the values of n that would be

The alternatives listed below are compared using the annual worth criterion. With an annual interest rate of 10%, the values of n that would be used in the factors (A/P,i,n) so that comparison is correct for the Annual Value method are: 
A B
Initial Cost -50,000 -90,000
Annual Cost -10,000 -4,000
Salvage value 13,000 15,000
Life, years 3 6
a. n =3 years for A y 3 years for B b. n =3 yeers for A y 6 years for B c. Either a or b previous options d. Neither a. or b. 

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