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Annual costs of 3 different systems are provided below. If the MARR is 8%, which system is the least costly of the three? Use incremental
Annual costs of 3 different systems are provided below. If the MARR is 8%, which system is the least costly of the three? Use incremental investment analysis and show all steps.
Year | System A | System B | System C |
0 | $0 | $2,000,000 | $4,000,000 |
1 | $9,000,000 | $3,800,000 | $1,900,000 |
2 | $9,000,000 | $3,800,000 | $1,900,000 |
3 | $9,000,000 | $3,800,000 | $1,900,000 |
4 | $9,000,000 | $3,800,000 | $1,900,000 |
5 | $9,000,000 | $3,800,000 | $1,900,000 |
6 | $9,000,000 | $3,800,000 | $1,900,000 |
7 | $9,000,000 | $3,800,000 | $1,900,000 |
8 | $9,000,000 | $3,800,000 | $1,900,000 |
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