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Two alternatives have been developed to accomplish the same mission. Both alternatives are expected to have the same revenue, but proposal 2 has a lower
Two alternatives have been developed to accomplish the same mission. Both alternatives are expected to have the same revenue, but proposal 2 has a lower first cost. However, the maintenance costs for proposal 2 will increase significantly each year. The alternatives characteristics are as follows: Use an interest rate of 9% to determine which the best alternative is What should be the initial cost of Alternative A to make both alternatives equally attractive? If useful life of Alternative 1 is estimated in 15 years, would you change the decision on part (a)? What should be the useful life of Alternative 1 to make both alternatives equally attractive
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