The following data is available for three different alternatives. Assume an interest rate of 9% per...

 

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The following data is available for three different alternatives. Assume an interest rate of 9% per year, compounded annually. Alternative A 5,000 725 infinite Initial Cost Annual Benefit Useful Life (yrs) Alternative B 2,100 1,681 10 Choose Alternative A because it lasts the longest Alternative C 10,000 4,313 5 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative. Choose Alternative A because its net present worth is postive Choose Alternative C because its net present worth is $4,323.68 more than its nearest competitor Choose Alterntive C because it has the highest annual benefit The following data is available for three different alternatives. Assume an interest rate of 9% per year, compounded annually. Alternative A 5,000 725 infinite Initial Cost Annual Benefit Useful Life (yrs) Alternative B 2,100 1,681 10 Choose Alternative A because it lasts the longest Alternative C 10,000 4,313 5 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative. Choose Alternative A because its net present worth is postive Choose Alternative C because its net present worth is $4,323.68 more than its nearest competitor Choose Alterntive C because it has the highest annual benefit