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At a MARR of 10% per year, determine the difference between the present worth of two alternatives. Alternative A has a first cost of $4,000,
At a MARR of 10% per year, determine the difference between the present worth of two alternatives. Alternative A has a first cost of $4,000, a maintenance cost of $800 per year, and a $200 salvage value after 5 years. Alternative B will have an initial cost of $5,000 with a maintenance cost of $700 per year, and a salvage value of $250 after 5 years. $490 $690 $590 $790 QUESTION 8 Compare two alternatives below using annual worth analysis at MARR = 10% per year. Alternatives First cost, $ Annual cost, $/year Salvage value, $ Life, years Alternative 1 -90,000 -50,000 8,000 5 Alternative 2 -750,000 -10,000 Alternative 2 and -$85,000 Alternative 1 and - $65,000 Alternative 2 and - $72,450 Alternative 1 and - $72,450
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