Question

: Consider four mutually exclusive alternatives: Each alternative has a 5-year useful life and no salvage value. The interest rate is 10%. Which alternative should be selected based on: a) Payback period b) Future worth analysis c) Benefit-cost ratio d) If answers in parts a, b, and c differ, explain why this is the case.

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5

Fig: 6

Fig: 7