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3. For the cash flows below, use an annual worth comparison to determine wh is best at an interest rate of 2% per month. A

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3. For the cash flows below, use an annual worth comparison to determine wh is best at an interest rate of 2% per month. A -90,000 -400,000 -900,000 -30,000 -20,000 First cost ($) M&O cost ($/month) Overhaul every 10 years ($) Salvage value ($) Life (years) 7,000 6 25,000 2001 8 4. Use the incremental ROR analysis for the following equipment alternatives to assist your manager to decide, if any, which one to purchase given that the MARR is 10%. First Cost ($) Annual Cost ($) Annual Revenue ($) Useful Life (years) Alternative 1 2 3 4 -80,000 -55,000 -150.000 -25,000 -30.000 -28,000 -18.000 -20,000 62.000 16.000 52.000 30.000 8 3. For the cash flows below, use an annual worth comparison to determine wh is best at an interest rate of 2% per month. A -90,000 -400,000 -900,000 -30,000 -20,000 First cost ($) M&O cost ($/month) Overhaul every 10 years ($) Salvage value ($) Life (years) 7,000 6 25,000 2001 8 4. Use the incremental ROR analysis for the following equipment alternatives to assist your manager to decide, if any, which one to purchase given that the MARR is 10%. First Cost ($) Annual Cost ($) Annual Revenue ($) Useful Life (years) Alternative 1 2 3 4 -80,000 -55,000 -150.000 -25,000 -30.000 -28,000 -18.000 -20,000 62.000 16.000 52.000 30.000 8

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