Question4 025 pts The MARR is 15 Three alternatives are avai

Question4 0.25 pts The MARR is 15%. Three alternatives are available and the associated cash flow is as follow: Year $1,700$2,100 $3,750 $1,000$1,000 $1,000 Annual Benefit Useful Life Answer the following in this format: 1.23 1. The payback period for Alternative A 2 The payback period for Altemative B is 3. The payback period for Altemative C is is 2. The payback period for Alternative B is 3. The payback period for Alternative C is Based on Payback period analysis, Alternative should be selected. (Enter only the letter)

Solution

Payback period = initial investment / net annual benefit

Payback period (A) = 1700/1000 = 1.7

Payback period (B) = 2100/1000 = 2.1

Payback period (C) = 3750/1000 = 3.75

So as per payback analysis alternative A is best