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 4% per year, compounded annually.

	A	B
Initial Cost	430	1135
Annual Benefit	100	200
Salvage Value	116	138
Useful Life (yrs)	2	3

A) Alternative B, because it only incurs the initial cost once every three years instead of every two years

B)Alternative B, because it costs $491.68 more than Alternative A, in terms of present worth

C)

Alternative A, because its present worth is positive

D) Alternative A, becasue it costs 491.68 less than Alternative B, In terms of Present Worth