Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should

Question:

Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis.

A B $150 Cost $800 $300 Uniform annual benefit 142 60 33.5

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...