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A contractor is considering three alternatives (A, B, and C) for a construction equipment. The estimator plotted the following graph of the equivalent uniform annual
A contractor is considering three alternatives (A, B, and C) for a construction equipment. The estimator plotted the following graph of the equivalent uniform annual cost (EUAC) of each alternative for interest rates ranging from 0% to 20%. Which equipment should the contractor buy?
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$55,000 A B $50,000 c $45,000 Equivalent Uniform Annual Cost (EUAC) $40,000 $35,000 $30,000 $25,000 $20.000 $15,000 $10,000 0,09 2.0% 4.0% 60% 8.0% 14.0% 16.0% 18.0% 20.0% 10.0% 12.0% Interest Rate If the interest rate is 8.0%. [Choose] Choose ] If the interest rate is 6.0%. material B material A If the interest rate is zero%. Cannot be determined material C If the interest rate is 16.0%. [Choose]Step by Step Solution
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