There are three mutually exclusive alternatives, as vendors to
outsource a project, with the following cash flow and useful life.
Which of these three alternatives would you recommend to be
selected? The MARR is 10% per year.
Vendor 1
Vendor 2
Vendor 3
First Cost
$60,000
$35,000
$25,000
Annual operating and maintenance cost
$3,000 every 4 years
$1,000 per year
$2,000 in yr 1 and it increases by $200 every year
thereafter
Salvage value
$10,000
$4,000
$3,000
Useful life, years...