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8-28 A firm is considering three mutually exclusive alter- natives as part of a production improvement pro- gram. The alternatives are as follows: Installed cost

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8-28 A firm is considering three mutually exclusive alter- natives as part of a production improvement pro- gram. The alternatives are as follows: Installed cost Uniform annual benefit Useful life, in years $10,000 $15,000 $20,000 1,890 20 1,625 10 1,625 20 For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years, Alt. A could be replaced by another A with identical cost and benefits. (a) Construct a choice table for interest rates from 0% to 100%. (b) The MARR is 6%. If the analysis period is 20 years, which alternative should be selected

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