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The costs and benefits of three project(A, B and Basic) are given in the table below. The interest rate is 6% and the analysis period

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The costs and benefits of three project(A, B and Basic) are given in the table below. The interest rate is 6% and the analysis period is 20 years. Alternative Initial Annual Annual Capital Maint. User Cost (M) Cost (U) Basic 0 150 4900 7800 70 B 12000 60 cost A 3400 3100 Capital Recovery Factors for various discount rates and n=20 years: 6% 8% 10% 12% 15% 0,087185 0,101852 0,117460 0,133879 0,159761 Using the INTERNAL RATE-OF-RETURN analysis (no other method will be accepted), determine: (a) The economic feasibility of the alternatives A and B. (6) Select the best alternative

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