annual expenses for two alternatives have been estimated on different bases as follows:

End of Year	Alternative A Annual Expenses Estimated in Dollars	Alternative B Annual Expenses Estimated in Real Dollars with base year = 0
1	10000	15000
2	11000	16000
3	11300	14000
4	11700	15500

If the average general price inflation rate is expected to be 0.11 per year and the real minimum acceptable rate of interest is 0.15 per year, calculate for both and show:

show which alternative has the least negative equivalent worth in the base period?

1- Actual MARR=

2- Present Worth (B) =

3-Present Worth (A) =

4- Which alternative is better? AND why?