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Annual expenses for two alternatives have been estimated on different bases as shown in the table. If the average general price inflation rate is expected

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Annual expenses for two alternatives have been estimated on different bases as shown in the table. If the average general price inflation rate is expected to be 6% per year and the real rate of interest is 9% per year, 1. to compare their equivalent worth in the base period, which worth method should you use? 2. what is the market interest rate in percent format? (HINT: show no more than 2 decimal points) 3. which alternative has the least negative equivalent worth in the base period? (HINT: Omit $ and % symbols, but observe signage +/-) End of Year Alternative A (EOY) Alternative EB Annual Expenses Estimated Annual Expenses Estimated in in Actual Dollars $120,000 $132,000 $148,000 $160,000 Real Dollars with b 0 $100,000 $110,000 $120,000 $130,000 4

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