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A company with a MARR = 10% is considering the two mutually exclusive options shown below. Neither option has a salvage value. Option A Option

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A company with a MARR = 10% is considering the two mutually exclusive options shown below. Neither option has a salvage value. Option A Option B Initial Cost $16,000 $23,000 $7,000 $6,000 Annual Benefit Increasing by $600 each year Increasing by 5% each year Life 10 Years 10 Years The Net Present Worth of OPTION A is closest to: a. $40,750 b. $35,120 C. $22,800 d. $15,900

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