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Consider the comparison between alternatives A and B. Using present worth method of analysis, and at an interest rate of 10% per year, the values

Consider the comparison between alternatives A and B. Using present worth method of analysis, and at an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison are:

A

B

First Cost

500,000

900,000

Annual Operating Cost

100,000

40,000

Salvage Value

130,000

150,000

Life

3 years

6 years

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