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* Compare the alternatives shown below on the basis of their capitalized costs, using an effective rate 3% per quarter compounded quarterly. Calculate the Capitalized

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* Compare the alternatives shown below on the basis of their capitalized costs, using an effective rate 3% per quarter compounded quarterly. Calculate the Capitalized Cost for each alternative and select the best alternative. Alternative A Alternative B First Cost in $ -350,000 -700,000 Quarterly income, $/quarter +50,000 +40,000 Salvage value, $ +70,000 0.00 Life, in quarters 12 quarters 00 Select Alternative B with CCB= +$1,333,333 u Select Alternative A with CCA= +$659,040 Select Alternative A with CCA= +$778,733 Select Alternative B with CCB= +$633,333

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