3 Ch:5 Determine the better of the two alternative based on present worth analysis. Interest rate = 9% Alt = Y 9,800 2,000 Options=> Alt = X Initial cost 12,500 Annual benefit 3,800 Salvage value 5,000 Life in years (n) 2 MARR 9% 8,000 3 9% 5 Ch:6 Using annual cash flow analysis, determine the better alternative. Assume that alternatives are replaced at the end of their useful lives, and they are continued. The interest rate is 9%. Options=> Alt = X Alt = Y Initial cost 4,000 6,000 Annual cost 1,000 500 Annual benefit 2,000 2,200 Salvage value 3,000 1,000 Life in years (n) 5 12 0