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Q.5. Following table shows the EOY cash flows for two mutually exclusive alternatives (one must be chosen). The alternatives represent all-in-one (AIO) printers for office

Q.5. Following table shows the EOY cash flows for two mutually exclusive alternatives (one must be chosen). The alternatives represent all-in-one (AIO) printers for office use applications. AIO Printer A AIO Printer B Capital investment, $ 6,000 10,000 Annual operating expenses, $ 1,500 1,200 Market value, $ 1,000 1,500 Useful life, years 5 7 The MARR is 15% per year. Determine (using FW method) which alternative should be selected if the analysis period is 7 years, the repeatability assumption does not apply, and a printer can be leased for $3,600 per year after the useful life of either printer is over.

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