Consider the mutually exclusive alternatives given in the table below: A B C Cap
ID: 2627215 • Letter: C
Question
Consider the mutually exclusive alternatives given in the table below:
A
B
C
Capital investment
Uniform annual savings
Useful life (years)
$500,000
$131,900
5
$250,000
$40,690
10
$400,000
$44,050
20
Assuming repeatability, which alternative should the company select? (Choose the one best answer from the choices given below.)
Do nothing
Alternative A
Alternative B
Alternative C
A
B
C
Capital investment
Uniform annual savings
Useful life (years)
$500,000
$131,900
5
$250,000
$40,690
10
$400,000
$44,050
20
Explanation / Answer
Alternative B