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4 Ch: 6 Using annual cash flow analysis (EUA), determine the better alternative. Assume that alternatives are replaced at the end of their useful lives.

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4 Ch: 6 Using annual cash flow analysis (EUA), determine the better alternative. Assume that alternatives are replaced at the end of their useful lives. The interest rate is 9%. OPTIONS = INITIAL COST ANNUAL MAINTENANCE ANNUAL BENEFIT SALVAGE AFTER LIFE LIFE IN YEARS MARR ALT X 4.000 1000 2,000 1,000 4. 12% ALTY 6.000 500 2,500 2,000 5 12%

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