The following two alternatives are mutually exclusive. Which one will you select if your MARR is 15% per year? Use rate of return analysis.
|
Alternative
|
Initial Cost
|
Annual Benefit
|
Life, years
|
|
Ordinary (O)
|
$30,000
|
$9,000
|
5
|
|
Above average (AA)
|
33,000
|
9,000
|
6
|