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PROBLEM 5 (15 pts) Use annualized capital cost analysis to determine which of the following two air compressors makes better economic sense to install, assuming

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PROBLEM 5 (15 pts) Use annualized capital cost analysis to determine which of the following two air compressors makes better economic sense to install, assuming a 8% cost of capital. (a) A $70,000 reciprocating compressor that needs to be replaced every 7 years (b) A $110,000 axial compressor that needs to be replaced every 12 years

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