Determine which alternative should present worth select

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A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology transfer, the project life of the improvement program is unknown. The firm has a MARR of 15.0%. Use net present worth analysis to determine which alternative should it select?

Reference no: EM13219915

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