Which alternative should select if analysis period is 20year

Reference no: EM13218280

A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10 20 20 There is no salvage value. At the end of 10 years Alt A can be replaced with identical cost and benefits. So, The MARR is 6%. If the analysis period is 20 years, which alternative should be selected?

Reference no: EM13218280

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