Question: You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three
You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice??
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| Alternative A | Alternative B | Alternative C |
| Type | Add Sum Pressure | HP Pumps | Test Me Often |
| Life | 20 years | 15 years | 10 years |
| Initial Cost | $350,000 | $300,000 | $200,000 |
| Maintenance | $2,000 | $2,500 | $5,000 |
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