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A firm is considering two alternatives that have no salvage value. A B Initial cost $9000 $4700 Uniform annual benefits 1400 1650 Useful life, in
A firm is considering two alternatives that have no salvage value. A B Initial cost $9000 $4700 Uniform annual benefits 1400 1650 Useful life, in years 10 5 At the end of 5 years, another B may be purchased with the same cost, benefits, and so forth. (a) Graph the EUAC or EUAW for the alternatives. Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 15%, which alternative should be selected
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