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Consider the following three mutually exclusive alternatives and the Do Nothing alternative. Each alternative has a 10-year useful life. If the MARR is 10.0% and

Consider the following three mutually exclusive alternatives and the Do Nothing alternative. Each alternative has a 10-year useful life. If the MARR is 10.0% and net present worth analysis is used, which alternative should be selected?

Cash Flow

A

B

C

Initial Cost

-$70,000.00

-$80,000.00

-$90,000.00

EUAB

$10,000.00

$15,000.00

$17,000.00

Salvage

$50,000.00

$8,000.00

$0.00

NPW

?

?

?

A. A

B. B

C. C

D. Do Nothing

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