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Consider the following three mutually exclusive alternatives and the Do Nothing alternative. Each alternative has a 10-year useful life. If the MARR is 10.0% and
Consider the following three mutually exclusive alternatives and the Do Nothing alternative. Each alternative has a 10-year useful life. If the MARR is 10.0% and net present worth analysis is used, which alternative should be selected?
| Cash Flow | A | B | C |
| Initial Cost | -$70,000.00 | -$80,000.00 | -$90,000.00 |
| EUAB | $10,000.00 | $15,000.00 | $17,000.00 |
| Salvage | $50,000.00 | $8,000.00 | $0.00 |
| NPW | ? | ? | ? |
A. A
B. B
C. C
D. Do Nothing
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