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2: (20 pts) Rola company, a plastic production company in Lebanon, plans to purchase a new equipment. Three possible vendors offer the estimates given in

2: (20 pts) Rola company, a plastic production company in Lebanon, plans to purchase a new equipment. Three possible vendors offer the estimates given in the table below. Vendor A Vendor B Vendor C Initial Cost (S Annual O&M Cost (3) 160,000 130,000 130,000 30,000 40,000 50,000 Useful Life (years): 10 10 10 We know that the initial cost and annual O&M cost of Vendor B are given in constant dollars, and all the other values are given in actual dollars in the table. The market interest rate is 18%, and the general inflation rate is estimated to be 9% per year for the next 10 years. (a) (10 pts) Using actual-dollar analysis, determine which option should be chosen based on Annual Worth Criterion? (b) (10 pts) Using constant-dollar analysis, determine which option should be chosen based on Present Worth Criterion

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