Question
Assuming that Alternatives B and C are replaced with identical units at the end of their useful lives,and an 8% interest rate, which alternative should
Assuming that Alternatives B and C are replaced with identical units at the end of their useful lives,and an 8% interest rate, which alternative should be selected? Use an annual cash flow analysis.
| A | B | C | |
| Cost | $10,000 | $150,000 | $20,000 |
| Annual Benifit | 1,000 | 1,762 | 5,548 |
| Useful life (yrs) |  | 20 | 5 |
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College Accounting
Authors: Heintz and Parry
20th Edition
1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192
