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A civil contractor is thinking about two graders to buy. Grader A will have an initial cost of $80,000, a yearly support and activity cost
A civil contractor is thinking about two graders to buy. Grader A will have an initial cost of $80,000, a yearly support and activity cost of $30,000, and a $40,000 salvage value. Grader B will have an initial cost of $97,000, a yearly M&O of $27,000 and $50,000 salvage. Which ought to be chosen based on a future worth comparison at a financing cost of 15% every year? Utilize a 3-year study period
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