A local pub is thinking about four different beverage delivery systems for a new location. The below table summarizes the systems:

They use a MARR of 10 percent and a system life of five years. The systems are roughly physically equivalent.

a) Determine which options are acceptable.

b) Which is the best? Why?

System Equipment costs $577,500 $446,100 $435,700 $249,800 Installation $250,000 $150,000 $200,000 $100,000 Expected Annual Profits $212,000 $145,000 $168,000 $100,000