use the tables of compound interest to look up the value of the factors. Do not...

use the tables of compound interest to look up the value of the factors. Do not use the interest formulas.

Two mutually exclusive alternatives are being considered. Both have lives of 5 years. Alternative 1 has a first cost of $2,500 and annual benefits of $746. Alternative 2 costs $6,000 and has annual benefits of $1,664. The minimum attractive rate of return (MARR) is 8%.

Use present worth analysis to determine which alternative should be selected.
Use annual cash flow analysis to determine alternative should be selected.
Use rate of return analysis to determine alternative should be selected.

Expert Solution

Ally Wells answered 6 months ago

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