Question

Consider the following four alternatives. Three are “do something” and one is “do nothing.” A B...

  1. Consider the following four alternatives. Three are “do something” and one is “do nothing.”

A

B

C

D

Cost

$0

$50

$30

$40

Net annual benefit

0

12

8

10

Useful life, in years

5

4

10

If a 10-year analysis period and 10% interest rate are selected, which is the preferred alternative?

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