(Solved):Consider four mutually exclusive and a do-nothing alternatives, each having an 8-year useful…

 

Question

Consider four mutually exclusive and a do-nothing alternatives, each having an 8-year useful life:

{eq}begin{array}{lcccc}

& text{A} & text{B} & text{C} & text{D} \

hline

text{First cost} & $1000 & $800 & $600 & $500 \

text{Uniform annual} \ text{benefit} & 125 & 120 & 100 & 125 \

text{Salvage value} & 750 & 500 & 250 & 0 \

hline

end{array}

{/eq}

a) Construct a choice table for interest rates from 0% to 100%.

b) If the minimum attractive rate

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