8-27 Three mutually exclusive alternatives may replace the current equipment.

1. Construct a choice table for interest rates from 0% to 100%.
2. If the MARR= 12%, which alternative should be selected ?

90 CHAPTER 8: CHOOSING THE BEST ALTERNATIVE Alternatives B and C are replaced at the end of their useful lives with identical replacements. Use an infinite analysis period. (a) Construct a choice table for interest rates from 0% to 100%. (b) At an 8% interest rate, which alternative is better? 27 Three mutually exclusive alternatives may replace the current equipment.(a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 12%, which alternative should be selected? 8 A firm is considering three mutually exclusive alter-natives as part of a production improvement pro-gram. The alternatives are as follows:Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life, in years 10 20 20 For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years