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Consider the following three mutually exclusive alternatives: A B First Cost ($) 10,000 15,000 Uniform Annual benefit ($) 1,000 1,762 Salvage Value ($) 0 1,500
Consider the following three mutually exclusive alternatives: A B First Cost ($) 10,000 15,000 Uniform Annual benefit ($) 1,000 1,762 Salvage Value ($) 0 1,500 Useful Life in Years 20 20,000 5,100 1,000 5 Assuming that alternatives B and C are replaced with identical units at the end of their useful lives, and an 8% interest rate, which alternative should be selected? Use capitalized cost analysis to select one of the three alternatives. Consider the following three mutually exclusive alternatives: A B First Cost ($) 10,000 15,000 Uniform Annual benefit ($) 1,000 1,762 Salvage Value ($) 0 1,500 Useful Life in Years 20 20,000 5,100 1,000 5 Assuming that alternatives B and C are replaced with identical units at the end of their useful lives, and an 8% interest rate, which alternative should be selected? Use capitalized cost analysis to select one of the three alternatives
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