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The purchase of new equipment is required for a factory. Perform a present value analysis to determine which of the available alternatives should be purchased,
The purchase of new equipment is required for a factory. Perform a present value analysis to determine which of the available alternatives should be purchased, if the interest rate is 6% per year.
Alternative Initial Cost Uniform Annual Profit Maintenance Costs Residual Value Useful Life Team 1 $ 700 $ 500 $ 30 $ 130 4 Team 2 $ 600 $ 300 $ 60 $ 250 6 Equipment C $ 950 $ 325 $ 70 $ 200 8
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