Consider four mutually exclusive alternatives, each having an 8-year useful life:
A
First Cost: $1,000
Uniform Annual Benefit: $122
Salvage Value: $750
B
First Cost: $800
Uniform Annual Benefit: $120
Salvage Value: $500
C
First Cost: $600
Uniform Annual Benefit: $97
Salvage Value: $500
D
First Cost: $500
Uniform Annual Benefit: $122
Salvage Value: $0
(a) Construct a choice table for interest rates from 0% to 100%
(b) If the minimum attractive rate of return is 8% which alternative should be selected?