Two buildings are being evaluated to establish an operation for the next 10 years. The company has a MARR of 15%. What is the best decision?

	A	B
Initial Investment	$615,000	$300,000
O&M Cost	$10,000	$25,000
Annual profit	$158,000	$,92,000
Residual Value	$65,000	$5,000

1. Alternative A because IRR(B)=18.01% and IRR(A-B)=23.15%
2. Alternative B because IRR(B)=22.01% and IRR(A)=20.74%
3. Alternative B because IRR(B)=18.01% and IRR(A)=10.74%
4. Alternative A because IRR(B)=18.01% and IRR(A)=20.74%
5. No project meets the required MARR