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A construction company has an alternative to purchase a certain bulldozer for $M1. It is estimated that there is a potential to gain $G1 in

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A construction company has an alternative to purchase a certain bulldozer for $M1. It is estimated that there is a potential to gain $G1 in each year. Also estimated is that the bulldozer could be sold for $S1 at the end of its economic life. There is SMO1 maintenance and operation costs in each year. Another alternative is to buy a machine of SM1 with annual benefit of $G2, a scrap value of $S2 annual maintenance and operation cost of SMO2 and. Finding the DM equivalents of benefits and costs for both alternatives, advice the company which machine to buy based on the BCA method. The annual discount rate is %l and the economic life of the machines is N years. er serilen ik M (5) BCA Gels) St Mo1 M2 13000 80000 6000 70000 7000 20ced 7500 3,5 17-0000 35 unifory B-C Another alternative must be $me instead of $m

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