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1. An engineer works on deciding which of the following alternatives should be invested. The MARR of the company is 20% per year and budget

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1. An engineer works on deciding which of the following alternatives should be invested. The MARR of the company is 20% per year and budget limit is $100,000. Each alter- native require a one-time cost as shown in the table at the end of the mid-year of it's useful life. Assist the engineer on her decision. Alternatives A B C D E First Cost (S) - 40.000-30,000 -60.000-50.000 -90.000 Annual Revenues (S) 14,600 18,000 19,200 14,100 5,800 One-time cost ($) 10,000 15.000 7,500 12.000 8.000 Salvage value (S) 5,000 8,000 12.000 Useful life 6 1 12 6 6 (a) What is your suggestion if the alternatives are independent? (b) What is your suggestion at the alternatives are mutually exclusive

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