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A B C First Cost 60 145 110 Uniform Annual Benefit 35 40 45 Useful Life, in years 9 6 At the end of
A B C First Cost 60 145 110 Uniform Annual Benefit 35 40 45 Useful Life, in years 9 6 At the end of its useful life, an identical alternative (with the same cost, benefits, and useful life) may be installed. All alternatives have no salvage value. If the MARR is 10%, which alternative should be Selected? (A.) Solve the problem by payback period (B.) Solve the problem by future worth analysis (C.) (D.) Solve the problem by benefit-cost ratio analysis If the answers in parts (A), (B) and (C) differ, explain why this is the case.
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