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All six mutually exclusive alternatives below have 20 years of useful life, no salvage value, if the minimum attractive rate of return is 6%, the
All six mutually exclusive alternatives below have 20 years of useful life, no salvage value, if the minimum attractive rate of return is 6%, the selected alternative would be:
[A] A5 [B] A4 [C] A3 [D] A2 [E] A1
Initial, Cost $4,ooo $2,ooo $6,000 Present Worth of Benefits $7,330 $4,7oo $8,730 (Calculated for you) B/C Ratio 1.83 1.46 2.35 (Calculated for you) $1,000 $1,340 1.34 A6 $9,000 $10,000 $9,000 $9,500 1.00 o.95Step by Step Solution
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