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How would you solve this using Excel? 5-72. A cost analysis is to be made to determine what, if anything, should be done in a
How would you solve this using Excel?
5-72. A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one do-nothing" alternatives. Estimates of the cost and benefits are as follows. Problems 191 Uniform End-of- Useful Annual Useful-Life Life Alternatives Cost Benefit Salvage Value (years) 1 2 3 4 $450 $150 550 125 800 135 0 0 $ 0 300 250 04 b 0 4 4 8 0 ir Use an 8-year analysis period. At the end of 4 years, Alternatives 1 and 2 may be replaced with identical alternatives. Which alternative should be selected? (a) If a 7% interest rate is used? (b) If a 14% interest rate is usedStep by Step Solution
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