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please show all steps, thank you. - Two pieces of construction equipment are analyzed for an eight-year life. The following cash flow, listing the purchase
please show all steps, thank you.
- Two pieces of construction equipment are analyzed for an eight-year life. The following cash flow, listing the purchase expenses and anticipated benefits over the life of the equipment is provided in the following table. Based on an 4% interest rate, which alternative should be selected? Develop an answer using either net present worth or equivalent uniform annual cash flow. (Hint - it may be helpful to develop a cash flow diagram and include it with your submittal.) Equipment Equipment Year Comments A B 0 -$2,000 -$1,500 Purchase 1 +1000 +700 Benefit 2 +850 +300 Benefit +700 +300 Benefit 4 +550 +300 Benefit 3 5 +400 +300 Benefit Benefit 6 +400 +400 7 +400 +500 Benefit 8 +400 +600 Benefit Step by Step Solution
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