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1. (14 Points) A company has 2 options to re-new its production line, two options are presented in the next table. Use the Present worth

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1. (14 Points) A company has 2 options to re-new its production line, two options are presented in the next table. Use the Present worth analysis to find which option is better? (consider i=8%) First Cost Annual cost Salvage value Service life Option A -60,000 -6,000 14,000 3 Option B -80,000 -4,000 16,000 9

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