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please solve by hand not excel or other form of pictograms. Your company has a project to build a new hazardous environment facility. Two options
please solve by hand not excel or other form of pictograms.
Your company has a project to build a new hazardous environment facility. Two options are being considered, both with projected lives of 15 years. Your company is using a MARR of 18%, and has collected data on the facilities as shown below. Initial cost Annual O&M cost Annual benefits Salvage value Alt. A $725,000 15,000 165,000 65,000 Alt. B $400,000 28,000 112,000 -7,500 a) What is the rate of return for Alt. A? Report your answer to four significant figures (xx.xx%). b) Which option should be selected? You must solve this problem using some form of rate of return analysisStep by Step Solution
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