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Two mutually-exclusive alternatives (designated P and Q) are being compared for an investment, both of which have a five-year life. Alternative P requires an initial

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Two mutually-exclusive alternatives (designated P and Q) are being compared for an investment, both of which have a five-year life. Alternative P requires an initial investment of $12,000 and returns a single benefit of $24,000 at the end of Year 5 . Alternative Q requires an initial investment of $20,000 and provides an annual benefit of $6,000 at the end of the next five years. Projected cash flows for the two alternatives are summarized in the cash flow table below. Ignore taxes for this problem. Compare the two alternatives over the four-year life using a MARR of 10% and clearly indicate which alternative should be chosen. (You may use any appropriate discounted cash flow method.) [ 10 points]

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