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2. Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%. $21,000.00 $42,000.00 Initial Cost Annual Benefit $35,000.00 $4,200.00 0 Salvage

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2. Your firm is considering the following 3 mutually exclusive alternatives. Interest rate is 10%. $21,000.00 $42,000.00 Initial Cost Annual Benefit $35,000.00 $4,200.00 0 Salvage value Project life $3,300.00 $1,000 20 year $5,000.00 1500 50 Forever a. Calculate the Benefit Cost ratio of each project b. Which of the 3 alternatives should be selected using B/C ratio analysis (show your work)? Alternative Selected=

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