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Jack our new ME would like to consider purchasing equipment from two sources the following cash flows. If money is worth 5 %, Which Alternative

Jack our new ME would like to consider purchasing equipment from two sources the following cash flows.

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If money is worth 5 %, Which Alternative should Jack be select? Show detail of your work Please.

a) Solving by Present Worth analysis?

b) Solving by Future Worth analysis?

Year Alternative-A Alt-B $2000 $2800 800 1100 +800 1100 +800 1100

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