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2. A company is searching for a land to build a new manufacturing plant. The following table provides the expected costs of each alternative land
2. A company is searching for a land to build a new manufacturing plant. The following table provides the expected costs of each alternative land for an infinite time horizon. Determine the alternative that the company should select. Assume i = 12%. (Note: You may use a proper equivalent worth analysis) 1 Capital Cost ($) Annual Cost ($) Replacement Cost ($) at the end of year-10 at the end of year-25 Alternative 2 3 4 -200,000 -250,000 -150,000 -400,000 -60,000 -75,000 -90,000 -50,000 -15,000 -15,000 -10,000 -30,000 -25,000-30,000 -40,000 -10,000
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