... a suitable analysis method The Present Worth method requires common analysis period, which is virtually impossible for this problem The problem is easy to solve by Annual Cash Flow Analysis EUACconventional-... ($12.2 (5.747))/$50 = 1.40 B/CA B/CB B/Cc B/Cd All alternatives have B/C > Proceed with ∆ analysis Incremental Analysis C- D Increment C- D $10 -$2.5 Δ Cost Δ Uniform Annual Benefit Δ Salvage Value... 0.88 A- B is an undesirable increment Conclusion: Choose B The solution may be checked by Net Present Worth or Rate of Return NPW Solution NPWA = $140 (P/A, 10%, 6) + $40 (P/F, 10%, 6) - $560