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Two alternatives for a recreational facility at LSU are being considered. Their cash flow profiles are as follows for the lives of4 and 2 years,
Two alternatives for a recreational facility at LSU are being considered. Their cash flow profiles are as follows for the lives of4 and 2 years, respectively. Assuming an i of 10% per year compounded annually, Select the closet answer for the Present Worth of each Alternative along with the best choice. EOY Alternative 1 Alternative 2 0 -$11,000 -$5,00IC 1 5,000 3,00C 2 4,000 3,00C 3 3,000 4 2,000 a. Alternative 1: -$2,862 Alternative 2: $187 Pick Alternative 2 b. Alternative 1: $470 Alternative 2: $370 Pick Alternative 2 C. Alternative 1: $470 Alternative 2: $187 Pick Alternative 1 d. Alternative 1: $470 Alternative 2: $370 Pick Alternative 1
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