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(a) Decide which of the two investments listed below is best, if money is worth 10.5%, compounded annually. (b) State the difference in capital costs.

(a) Decide which of the two investments listed below is best, if money is worth 10.5%, compounded annually.

(b) State the difference in capital costs.

Choice A: Initial cost of $12,000 with a life of ten years and scrap value of $450

Choice B: Initial cost of $11,600 with a life of 7 years and scrap value of $600

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