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Time (30 minutes) The following are cash flow diagrams for two mutually exclusive alternative equipment models. Answer questions 1, 2, and 3, accordingly. 6,700 12,500

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Time (30 minutes) The following are cash flow diagrams for two mutually exclusive alternative equipment models. Answer questions 1, 2, and 3, accordingly. 6,700 12,500 Model x Model Y 5,500 / year 6,900/year 500/year 1,500/year 20,000 30,000 1. What is the RR of each model? (Show detailed calculations 2. Draw a net cash flow diagram for the increment investment analysis between Models X and Y 1 2 3 4 5 3. Based on the diagram in question 2. what is the expected RR of this increment investment Which model do you recommend? Knowing that MARR is 8% (Show detailed calculations la ENG O T here to search

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