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Problem 2:(17 points) Compare the alternatives A and B on the basis of an Present worth analysis using an interest rate of 6% per year.

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Problem 2:(17 points) Compare the alternatives A and B on the basis of an Present worth analysis using an interest rate of 6% per year. Note: You have to use the specified method. Machine A Machine B First cost $5,000 $8,000 Annual Operating cost $1000/year $700/year Salvage value $1,200 $2000 Life 2 years 3 years

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