Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives. Assume an interest rate of 20% per year, compounded annually. Alternative B Alternative A 470 40 965 118 Initial Cost Annual Benefit Salvage Value Useful Life (yrs) 164 260 Alternative B, because it only incurs the initial cost once every three years instead of every two years Alternative B, because it costs $251.01 more than Alternative A, in terms of present worth Alternative A, because its present worth is positive Alternative A, because it costs $251.01 less than Alternative B, in terms of present worth