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4. The 3 alternatives shown have unequal lives. Which alternative should be selected based on the present worth comparison. A1-2 = 20,000 Alternative A (2-yr
4. The 3 alternatives shown have unequal lives. Which alternative should be selected based on the present worth comparison. A1-2 = 20,000 Alternative A (2-yr life) i = 6% per year 0 1 2 3 4 5 6 7 8 9 10 Yrs Alternative B (5-yr life) i = 6% per year 25K 15K 15K 15K 15K | 0 1 2 3 4 5 6 7 8 9 10 Yrs Alternative A (10-yr life) Aus = 10,000 i = 6% per year As 10 = 35,000 0 1 3 4 5 6 7 8 9 10 Yrs
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