Consider the Three Mutually Exclusive Alternatives Below

question 28

Essay

Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 9% per year. $\begin{array}{|l|l|l|l|}\hline \text { Alternative } & \mathbb{M} & \mathbb{N} & \mathbb{P} \\\hline \text { Capital investment } & \$ 400,000 & \$ 4000 & \$ 150,000 \\\hline \text { Annual expense } & \$ 189,000 & \$ 94,500 & \$ 134,000 \\\hline \text { Annual revenue } & \$ 309,000 & \$ 194,500 & \$ 234,000 \\\hline \text { Salvage value } & \$ 65,000 & & \$ 130,000 \\\hline \text { Life, years } & 24 & \mathbb{} & 12 \\\hline\end{array}$

---

Definitions:

Consideration

In leadership, refers to the degree to which a leader shows concern and respect for followers, contributing to a supportive environment.

Turnover Rates

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of workplace satisfaction and organizational health.

Grievances

Formal complaints or disputes, often from employees towards an employer, regarding conditions of employment or dissatisfaction with treatment.

Absenteeism

The habitual non-presence of an employee at their job, often without good reason.