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Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 14% per year and a study period of
Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 14% per year and a study period of 8 years. Alternative First Cost $-17,000 $-50,000 Annual Operating Cost $-6,000 $-5,000 Overhaul in Year 4 $0 $-4,000 Salvage Value $1,800 $10,000 Life 4 years 8 years The present worth of alternative A is $ -45475.1523 and that of alternative B is $ -72057.4 Alternative A is selected
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