Question: Two mutually exclusive alternatives are being considered. Both have lives of 5 years. Alternative A has a first cost of $2500 and annual benefits of $746. Alternative B costs $6000 and has annual benefits of $1664 If the minimum attractive rate of return is 8%, which alternative should be selected? Solve the problem by
(a) Present worth analysis
(b) Annual cash flow analysis
(c) Rate of return analysis