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%.