Compare the following two facilities, 1 and 2, using present worth over a life of 25 years

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Compare the following two facilities, 1 and 2, using present worth over a life of 25 years at interest rates of 15% per annum and 10% per annum. Comment on the difference. The capital costs and incomes for each facility are as follows:

Facility Capital cost $ Annual income $

1 100 000 20000 2 60 000 11000

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