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Two alternatives and make a recommendation

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Please answer the following questions:

Two mutually exclusive alternatives are being considered. Alt. A will cost $45,000, and provide benefit of $15,000/yr with a $4000 salvage at the end of its 4 year life. Alt. B will cost $61,000 and return annual benefits of $19,500 over its 4 year life with a $3000 salvage.

a. Use NPV techniques to analyze these two alternatives and make a recommendation. The BTRR (interest rate) is 12%

b. Use IRR techniques to analyze these two alternatives and make recommendations.

Reference no: EM13974098

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