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Question 5 20 pts Consider two alternatives; Type A and Type B. Type A has an initial cost of $70,000 and a life of 8
Question 5 20 pts Consider two alternatives; Type A and Type B. Type A has an initial cost of $70,000 and a life of 8 years. Type B has an initial cost of $95,000 and a life of 12 years. The annual operating cost (AOC) for type A is expected to be $9,000, while the AOC for type Bis expected to be $7,000. If the salvage values are $5,000 and $10,000 for type A and type B, respectively, the incremental cash flow value (using LCM) at the end of year 8 is: Less than $60,000 Between $60,000$65,000 Between $65,000-$70,000 O Higher than $70,000
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