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2. (15%) Consider the following two mutually exclusive alternatives. Which project should be selected on the basis of the rate of return on incremental investment,
2. (15%) Consider the following two mutually exclusive alternatives. Which project should be selected on the basis of the rate of return on incremental investment, assume the MARR= 10% per year. (Hint: 5%-15% Initial cost Salvage value Life (years) $8,000 $3,500 $0 $13,000 $1,600 $2,000 Annual cost A 10 5 B
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