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Problem #4 (AB/AC analysis) Data for four mutually exclusive alternatives are given in the table below. Assume a life of 7 years and a MARR of 9%, Alt. A Initial Cost

$5,600 EUAB $1,400 Salvage Value $400 Alt. B Alt. C $3,400 $1,000 $400 $0 $0 $1,200 Alt. D Do Nothing $0 $0 $0 44 Draw a Cash- flow diagram for Alt. A Use the incremental benefit-cost ratio analysis (AE) to select the best alternative. Using any other method than AB/AC Method will not be accepted.

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