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One of two mutually exclusive alternatives must be selected. Alternative A costs $35,000 now for an annual benefit of $7, 250 with a salvage value
One of two mutually exclusive alternatives must be selected. Alternative A costs $35,000 now for an annual benefit of $7, 250 with a salvage value of $14,000. Alternative B costs 555,000 now for an annual benefit of $9,000 with a salvage value of $23,000. Using a 12% interest rate and an expected lifetime of 8 years, which do you recommend? Solve by annual cash flow analysis
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