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Please answer A company is considering purchasing new equipment based on AW criteria. i = 6% Choice A has a lifetime of 10 years Initial

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A company is considering purchasing new equipment based on AW criteria. i = 6% Choice A has a lifetime of 10 years Initial Cost 20,000 Net Revenue at t = 1 is 4000. Each year Net Revenue DECREASES by 200. Salvage Value is 3000. Choice B has a lifetime of 10 years Initial Cost 10,000 Net Revenue at t = 1 is 1000 Each year Net Revenue INCREASES by 200. Salvage Value is 1500. What is the AW of the two systems and which should be chosen based on AW O -422 389 |III B -422 |1|1 -322 neither O 706 |1|1 559 A O 1435 |1|1 -796 A O 706 |Ill -796 A O 1435 | || 253 A

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