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Please refer to the table in the previous problem.Compute the present worth of alternative B given i=6%.Note that you will be comparing this to alternative

Please refer to the table in the previous problem.Compute the present worth of alternative B given i=6%.Note that you will be comparing this to alternative A in the previous problem,and also note that they have different lives,and that your answer should be negative.

Alternative A

Initial Cost: $4500

Annual Cost: $300

Salvage Value: $500

Life: 5 years

Alternative B

Initial Cost: $5500

Annual Cost: $400

Salvage Value: $0

Life: 10 years

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