A firm is considering two alternatives: At the end of 4 years, another B may be purchased

Question:

A firm is considering two alternatives:

A Initial cost Uniform annual benefits $10,700 $5500 2,100 1800 Salvage value at end of useful life Useful life, in year

At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth. If the MARR is 10%, which alternative should be selected?

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...