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Alternative R has a first cost of $91,000, annual M&O costs of $64,000, and a $20,000 salvage value after 5 years. Alternative S has a
Alternative R has a first cost of $91,000, annual M\&O costs of $64,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $61,000 salvage value after 5 years, but its annual M\&O costs are not known. Determine the M\&O costs for alternative S that would yield a required incremental rate of return of 23%. Alternative R has a first cost of $91,000, annual M\&O costs of $64,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $61,000 salvage value after 5 years, but its annual M\&O costs are not known. Determine the M\&O costs for alternative S that would yield a required incremental rate of return of 23%
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