In: Accounting
You are choosing a pump to go into a fire protection system in a high rise office building. You have narrowed your selection to three brands. The relevant information is presented in the table below. Assuming an interest rate of 5%, what is the most attractive choice??
| 
 Alternative A  | 
 Alternative B  | 
 Alternative C  | 
|
| 
 Type  | 
 Add – Sum – Pressure  | 
 HP Pumps  | 
 Test – Me – Often  | 
| 
 Life  | 
 20 years  | 
 15 years  | 
 10 years  | 
| 
 Initial Cost  | 
 $350,000  | 
 $300,000  | 
 $200,000  | 
| 
 Maintenance  | 
 $2,000  | 
 $2,500  | 
 $5,000  |