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Compare the options shown below on basis of their Equivalent Uniform Annual Worth. Use an interest rate of an effective 12% per year, compounded quarterly

Compare the options shown below on basis of their Equivalent Uniform Annual Worth. Use an interest rate of an effective 12% per year, compounded quarterly and draw the a respective Cash Flow Diagram. Carryout the decimal form of interest rates to 4 decimal places, and interest factors to 5 decimal places.

Option A Option B
First Cost $200 000 $800 000
Annual Operating Cost $65 000 $9 000
Salvage Value $6 000 $1 000 000
Life, years 4 infinity

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