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A company with a minimum attractive rate of return (MARR) of 10% plans to install one of two elevators in one of its office buildings.

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A company with a minimum attractive rate of return (MARR) of 10% plans to install one of two elevators in one of its office buildings. Doing nothing is not an option. The elevators provide an estimated 20-year service 1 elevator. (a) The installed cost of elevator X is $200,000 with an annual operating and maintenance (O&M) cost of S30,000. (b) The installed cost of elevator Y is S250,000 with an annual operating and maintenance (O&M) cost of $20,000

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