The analysis period is 8 yearsnbsp at the end of 2 4 and 6


Consider three mutually exclusive alternatives and the do-nothing alternative.


A

B

C

Initial cost

$770

$1406

$2563

Uniform annual benefit

$420

$420

$420

Useful life, years

2

4

8

Rate of return

6.0%

7.5%

6.4%

The analysis period is 8 years.  At the end of 2, 4, and 6 years, the Alt. A will have an identical replacement.  Alt. B will have a single identical replacement at the end of 4 years.  Construct a Choice Table for interest rates from 0 to 100%.

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Business Management: The analysis period is 8 yearsnbsp at the end of 2 4 and 6
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