You are considering two mutually exclusive alternatives.

	Alternatif A	Alternatif B
Capital (initial) investment	6.000	14.000
Annual expense	2.500	2.400
Useful life	12 year	18 year
Scrap (salvage) value	0	2.800

MARR with 10%,

a) If the repeatability assumption is valid, which alternative would you prefer?

b) If repeatability is not valid, the analysis period (study period) is 18 years and if you can rent a third alternative for $ 8,000 per year after the life of A or B is completed, which alternative would you prefer?