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2. A construction company has the option to purchase a new piece of equipment and is considering 3 alternatives, as listed in the table below.

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2. A construction company has the option to purchase a new piece of equipment and is considering 3 alternatives, as listed in the table below. a) which option should they buy, assuming a MARR of 14%? Solve this problem using an analysis period of 6 years and assuming linear depreciation of equipment. Model Initial Cost $125,000 $175,000 205,000 Economic Life 3 years 4 years 6 years Yearly Savings $62,000 $70,000 $60,000 b) Perform a sensitivity analysis for Model B, assuming an analysis period of 6 years. Vary the initial costs, yearly savings, and MARR from-20% to 20% of the base values indicated using increments of 5%. Plot the result as a spider diagram, Which parameter is most sensitive to change

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