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(c) The following table gives the information about two alternative proposals A and B. Assuming MARR -6%, conduct the following analyses. Alternatives A Capital

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(c) The following table gives the information about two alternative proposals A and B. Assuming MARR -6%, conduct the following analyses. Alternatives A Capital investment $1,350,000 Annual expenses $110,000 Other expenses 0 Salvage value 0 Life, years Infinity (i) (ii) B $700,000 $95,000 $200,000 for every 12 years after year 0 0 Infinity Given the information in the table, draw the cash flow diagrams for each alternative. (4 marks) Calculate the capitalized worth of each of the alternatives. Which alternative should be recommended based on your answers? (5 marks) Capitalized worth of alternative A: Capitalized worth of alternative B: Based on the above calculations, Alternative should be recommended. (1 mark)

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