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Consider the two service producing projects described below. They will provide the same service but they do not have equal lives. Which alternative should be

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Consider the two service producing projects described below. They will provide the same service but they do not have equal lives. Which alternative should be chosen by using the NPC and the common study period method? Assume that the salvage value for Alternative B will increase to $4,000 at the end of year 3 and that the MARR is 10%. Alternative A: 0 1 2 3 -15000 -1000 -1000 -1000 L=0 Alternative B: 0 1 2 3 4 -10000 -3000 -3000 -3000 -3000 L = 2000 Alternative A Both A and B Do Nothing Alternative B

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