Q 3.4:
Assuming that Alternatives A and C are replaced continuously with identical units at the end of
their useful lives, and a 9% interest rate, which alternative should be selected? Use an annual
worth, EUAW analysis.
| | A | B | C |
|---------------|-----------|-----------|-----------|
| Cost | $12,500 | $15,000 | $17,500 |
| Annual benefit| 1,500 | 3,500 | 2,500 |
| Useful life (yrs)| $\infty$ | 7 | 15 |