Consider four mutually exclusive alternatives that have eight-year useful lives and no salvage value.

	A	B	C	D
Initial Cost	$1300	$1300	$2400	$5900
Uniform Annual Benefit	$420	$433	$683	$1100

Assume that the minimum attractive rate of return (MARR) is 8%.

1) Which is the better alternative, Alternative A or Alternative B?

2 Using the alternative that you found to be best in Step 1, compare that alternative to Alternative C. Which of these is the best alternative?

3 Using the alternative that you found to be best in Step 2, compare that alternative to Alternative D. Which of these is the best alternative?

4 If you limit yourself to the 8%, 10%, 12%, and 15% interest tables, which of these four interest rates is closest to the rate of return for the best alternative?