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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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