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Compare the alternatives below on the basis of their capitalized costs. Assume the MARR is 10% per year, compounded annually Project A Project B Project

Compare the alternatives below on the basis of their capitalized costs. Assume the MARR is 10% per year, compounded annually Project A Project B Project C First cost ($200,000) ($275,000) ($800,000) Annual income $60,000 $70,000 $80,000 Salvage value $40,000 $60,000 $500,000 Life, years 4 7 infinity a) What is the annual worth of the first cost for Project A? b) What is the annual worth of the first cost for Project B? c) What is the annual worth of the first cost for Project C? d) What is the annual worth of the salvage value for Project A? f) What is the annual worth of the salvage value for Project B? e) What is the annual worth of the salvage value for Project C?

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