Three alternative types of economic analysis are listed as follows: 1. Total annual cost, which takes the form of minimizing equivalent uniform annual cost. 2. Cost-benefit ratios for alternatives compared to continuation of present conditions. 3. Rate of return on investment as compared with original condition. A comparison of the results when each of the above methods is used to evaluate two alternative plans when the interest rate is 8% and again with a 12% interest rate will show that:

a. The three methods will agree on the more economical method whichever interest rate is applied. b. The rate of return method will give more of an advantage to the alternative having the highest annual maintenance and operation expenses than the other two methods. c. The cost-benefit ratio method will give more of an advantage to the alternative having the highest first cost than the other two methods. d. Using the total annual cost method will give a higher preference to the alternative having the longest life span than the other two methods.