use the tables of compound interest to look up the value of the factors. Do not...

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Civil Engineering

use the tables of compound interest to look up the valueof the factors. Do not use the interest formulas.

Two mutually exclusive alternatives are being considered. Bothhave lives of 5 years. Alternative 1 has a first cost of $2,500 andannual benefits of $746. Alternative 2 costs $6,000 and has annualbenefits of $1,664. The minimum attractive rate of return (MARR) is8%.

  1. Use present worth analysis to determine which alternativeshould be selected.
  2. Use annual cash flow analysis to determine alternative shouldbe selected.
  3. Use rate of return analysis to determine alternative should beselected.

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