Evaluate these mutually exclusive alternatives over a time period of 15 years assuming a MARR of 9%:
A B C
Initial investment $11,000 $17,000 $19,000
Annual savings $2,600 $ 5,500 $ 8,600
Annual costs $1,000 $ 2,750 $ 5,900
Salvage value $6,000 $ 4,400 $14,000
Use the following:
(a) Conventional B/C ratio (rounded to 3 decimal places)
(b) Present worth analysis (rounded to nearest dollar)
(c) Internal rate of return analysis (rounded to 1 decimal place)
(d) Payback period (rounded up to the total # of years until payback is complete)
Assume that salvage value is considered like a cost in these evaluations