The county commissioner is considering three alternatives to spread gravel over a rough dirt road leading to a public astronomical observatory associated with the local university. The first cost of each alternative occurs at end-of-year 0 , and benefits are estimated for the following 3 years, after which additional maintenance will be required. If the commissioner does not select any of the alternatives, the road will remain a muddy and rutted mess at times. Use a benefit-cost analysis to determine the preferred alternative for each of the MARR values shown below.

a. MARR is 0 percent.

b. MARR is 7 percent.

c. MARR is 14 percent.

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End of Year A B C 0 -$10,000-$15,000-$18,000 1 5,000 7,000 8,000 2 5,000 7,000 8,000 3 5,000 7,000 8,000