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Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost investment can

Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost i

Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost investment can be invested at 20%. Alternative A B Initial Cost $100,000 $300,000 $500,000 Annual Profit Profit Rate 30% 22% 16% $30,000 $66,000 $80,000 Which alternative should be selected? Use challenger-defender rate of return analysis.

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