A firm is considering two alternatives:
A B
Initial cost $10,700 $7,500
Uniform annual benefits $2,000 $1,600
Salvage value at the end of useful life $600 $200
Useful life 8 years 6 years
At the end of their useful lives, both A and B may be purchased with the same cost, benefits, and so forth. If the MARR is 12%, which alternative should be selected based on the internal rate of return using the least common multiple approach?