The following data is available for three different alternatives. Assume an interest rate of 6% per year, compounded annually.

The following data is available for three different alternatives. Assume an interest rate of 6% per year, compounded annually. Initial Cost Annual Benefit Useful Life (yrs) Alternative A Alternative B Alternative C 7,000 1,475 infinite 2,500 2,514 16 14,000 4,807 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative. Choose Alternative C because its net present worth is $4,767.40 more than its nearest competitor Choose Alternative A because its net present worth is postive Choose Alternative A because it lasts the longest Choose Alterntive C because it has the highest annual benefit