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Consider two alternatives, A and B. A has initial cost of $15,000, useful life of 25 years, and annual net savings of $950. While B
Consider two alternatives, A and B. A has initial cost of $15,000, useful life of 25 years, and annual net savings of $950. While B has initial cost of $25,000, useful life of 25 years, and annual net savings of $2,125. Find the value of the interest rate, at which both alternatives are the same (i.e., you can do either A or B and get the same rate of return)? 10% interest rate.
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