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8-6. A firm is considering two alternatives that have no salvage value. A B Initial cost $9000 $4700 Uniform annual benefit 1400 1650 Useful life,

8-6. A firm is considering two alternatives that have no salvage value.

A B Initial cost $9000 $4700 Uniform annual benefit 1400 1650 Useful life, in years 10 5

At the end of 5 years, another B may be purchased with the same cost, benefits, and so forth.

a. Graph the EUAC or EUAW for the alternatives. Construct a choice table for interest rates from

0% to 100%

b. If the MARR is 15%, which alternative should be selected.

Please show formulas in excel.

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