Question
Show how you would calculate the maximum initial cost that alt B can have before it is no longer the preferred alternative for the following
Show how you would calculate the maximum initial cost that alt B can have before it is no longer the preferred alternative for the following problem:
A Initial Cost 3000 Uniform annual benefit 400
B Inital Cost 2000 Uniform annual benefit 500
Assume a 20 year life, 7% MARR, no salvage value. Use shorthand economic form and use NPW as the evaluation criterion.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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