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A) Determine the best system using the B/C method 10-12. A town in northern Colorado is planning on investing in a water purification system. Three
A) Determine the best system using the B/C method 10-12. A town in northern Colorado is planning on investing in a water purification system. Three mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (salvage values are negligible). System EOY A B 0 1 2. 3 4 -$160,000 - $245,000-$200,000 80,000 120,000 80,000 70,000 100,000 80,000 60,000 80,000 80,000 50,000 60,000 80,000 If the town's MARR is 10% per year, use the B-C ratio method to determine which system is best. (10.9)
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