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6-50. Consider these mutually exclusive alternatives. MARR =8% per year, so all the alternatives are acceptable. (6.5) Capital investment (thousands) Alternative A B C
6-50. Consider these mutually exclusive alternatives. MARR =8% per year, so all the alternatives are acceptable. (6.5) Capital investment (thousands) Alternative A B C $250 $375 $500 Uniform annual savings $40.69 $44.05 $131.90 (thousands) Useful life (years) Computed IRR 10 20 5 (over useful life) 10% 10% 10% At the end of their useful lives, alternatives A and C will be replaced with identical replacements (the repeatability assumption) so that a 20-year service requirement (study period) is met. Which alternative should be chosen and why?
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