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 3% per year, compounded annually. Alternative A Alternative B Initial Cost 50 Salvage Value 190 0 Alternative B, because it only incurs the initial cost once every three years instead of every two years 0 Alternative B, because it costs $620.79 more than Alternative A, in terms of present worth 0 Alternative A, because it costs $620.79 less than Alternative B, in terms of present worth 0 Alternative A, because its present worth is positive Find the capitalized cost for the following cash flows occurring over an infinite number of periods, where A, B and C are defined as below. D B B 1 2 3 4 5 6 Repeating forever P A = $20 B = $10 C = $30 Assume the interest rate is 16%. O $19.54 O $122.15 O $134.38The following data is available for three different alternatives. Assume an interest rate of 2% per year, compounded annually. Alternative A Alternative B Alternative C Initial Cost 1,000 1,000 2,000 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, nd the best alternative. 0 Choose Alternative A because its net present worth is postive Q Choose Alternative C because its net present worth is $12,391.89 more than its nearest competitor O Choose Alternative A because it lasts the longest 0 Choose Alterntive C because it has the highest annual benet