Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows:

Alternative A Alternative B

First cost $615,000 $300,000

Maintenance and

operating cost $10,000$25,000

Annual benefits $158,000$92,000

Salvage value $65,000 -$5,000

The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected? (Use incremental analysis) (20 points)