What are the four mutually exclusive alternatives

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Reference no: EM13202022

Consider four mutually exclusive alternatives, each having an 8-year useful life:

A
First Cost: $1,000
Uniform Annual Benefit: $122
Salvage Value: $750

B
First Cost: $800
Uniform Annual Benefit: $120
Salvage Value: $500

C
First Cost: $600
Uniform Annual Benefit: $97
Salvage Value: $500

D
First Cost: $500
Uniform Annual Benefit: $122
Salvage Value: $0

(a) Construct a choice table for interest rates from 0% to 100%
(b) If the minimum attractive rate of return is 8% which alternative should be selected?

Reference no: EM13202022

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