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PLEASE USE THE MEHOD THAT IT SAYS IN EACH PART(a, b, c). 6. Three mutually exclusive alternatives are being considered. The study period is 10
PLEASE USE THE MEHOD THAT IT SAYS IN EACH PART(a, b, c).
6. Three mutually exclusive alternatives are being considered. The study period is 10 years and the MARR is 10% per year. The estimated cash flows are listed in the table below. Assume repeatability. Alternative A Capital Investment $170.000 Annual Revenues $114.000 Annual Expenses $70,000 Salvage Value $17.000 Life Alternative B $330,000 $147.000 $79.000 $33.000 10 Alternative C $300,000 $130.000 $64,000 $30.000 10 a. Using the Future Worth method, which alternative would you recommend? b. Using the Present Worth method, confirm your recommendation. c. What is the Capital Recovery of each alternative Step by Step Solution
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