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An owner is considering upgrading the siding on her house. Package A costs $50,000 and is expected to save $7,000 annually in heating and cooling.
An owner is considering upgrading the siding on her house. Package A costs $50,000 and is expected to save $7,000 annually in heating and cooling. Package B costs $70,000, and the expected annual savings is $9,000. Which Package should be chosen if the discount rate is 9% over a 20 year period?
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