Obi, Juan, Ken & Obi’s brother, Michael, started their ownlight saber business. They have decided to invest some of theirmoney in only 1 of the following projects. All the projects have arequired rate of return of 8% and a 5 year-useful life. Using rateof return analysis, which option should be selected?
| A | B | C | D | E |
Initial Cost | $100 | $130 | $200 | $330 | $0 |
Annual Benefits | $150 | $130.78 | $185 | $184.55 | $0 |
Yearly Cost | $123.62 | $92 | $137.52 | $93 | $0 |
