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Two alternatives have the following cash flows: Alternative A Alternative B First Cost $40,000 $75,000 Annual Income 14,000 14,600 Salvage Value 4,000 6,000 Useful

Two alternatives have the following cash flows: Alternative A Alternative B First Cost $40,000 $75,000 Annual Income 14,000 14,600 Salvage Value 4,000 6,000 Useful Life 3 years 6 Years At a 6% interest rate, which alternative should be selected?

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