The good people at Cooper Bank are looking at five mutually exclusive alternatives that have a ten-year life and no salvage value. Due to intellectual property concerns, they can only invest in one project. Park Bank uses a MARR of 9%. Which one of the five should they select? Why?
$(000)
Park Corporation Valles Global Industries SohnCo AllaCorp Martin Engineering
Initial Cost $4000 $5000 $2000 $3000 $6000
Uniform Annual Benefit $651 $885 $259 $447 $1195