Data Alt. A Alt. B Alt. C Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benef
ID: 1091343 • Letter: D
Question
Data
Alt. A
Alt. B
Alt. C
Initial Cost
$6,000
$1,000
$1,500
Uniform Annual Benefit
$525
$300
$450
Useful Life ,Years
20
5
10
Select the most appropriate answer from the choices below. No partial credit. Show all work, no credit if work not shown (not a guessing game).
A. The best alternative is A
B. The best alternative is B
C. The best alternative is C
D. The best alternative is
Data
Alt. A
Alt. B
Alt. C
Initial Cost
$6,000
$1,000
$1,500
Uniform Annual Benefit
$525
$300
$450
Useful Life ,Years
20
5
10
Explanation / Answer
best alternative is A
if we calculate the profit from all three options the answer are as follows for A,B, and C
A:525*20=10500,comparing with initial cost i.e 6000 we get profit of 4500
B:300*5=1500,comparing it with initial cost i.e 1000 we get profit of 500
C:450*10=4500,comparing it with initial cost i.e 1500 we get profit of 3000
maximum profit we will get is in option A
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