Three mutually exclusive alternatives are being considered:

At the end of its useful life, an alternative is not replaced.
If the MARR is 10%, which alternative should be selected?
(a) Based on the payback period?
(b) Based on benefit-cost ratio analysis?

Initial cos SS00 $400 $300 Benefi at end of the firs 200 200 200 Uniform benefit at end of Usefu life, in years year 100 125 100 subsequent years