Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives. Assume an interest rate of 20% per year, compounded annually. Alternative A Alternative B Initial Cost |440 1,300 Annual Benefit 80 236 Salvage Value 148 163 Useful Life (yrs) 2 3 Alternative A, because its present worth is positive O Alternative A, because it costs $650.77 less than Alternative B, in terms of present worth Alternative B, because it costs $650.77 more than Alternative A, in terms of present worth Alternative B, because it only incurs the initial cost once every three years instead of every two years