A firm is considering two alternatives that have no slavage value.
Alternative A:
Initial cost- $10,700
Uniform Annual Benefits- $2,100
Life in years- 8
Alternative B:
Initial cost- $5500
Uniform annual benefits- $1800
Life- 4
At the end of 4 years, another B may be purchased with the same costs, benefits, etc.
a) Construct a choice table for interest rates from 0% to 100%
b) If the MARR is 10%, which alternative should be selected?