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Alternative A has a first cost of $15,000, an annual operating cost of $5,000, and a salvage value of $6,000. Alternative B has an initial
Alternative A has a first cost of $15,000, an annual operating cost of $5,000, and a salvage value of $6,000. Alternative B has an initial cost of $25,000, an annual operating cost of $1,000 and a salvage value of $12,000. If both alternatives have a five-year life, the equation that will yield the Rate of Return on the incremental investment is: 00-$10,000 - 4,000(P/A,i*,5) + 6,000(P/F.i*,5) O 0=-$10,000+4,000(P/A,i*,5) - 18,000(P/F,i*,5) O 0=-$10,000+4,000(P/A,i*,5) + 12,000(P/F i*,5) O 0=-$10,000+4,000(P/A,i*,5) + 6,000(P/F,i*,5)
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