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Using present worth analysis, which alternative should be chosen given a planning horizon of 8 years? MARR = 9%. Annual operating costs will increase by
Using present worth analysis, which alternative should be chosen given a planning horizon of 8 years? MARR = 9%. Annual operating costs will increase by 12% per year. option A first cost 350000, Annual operating cost 28000, resale value loss/year 65000, useful life 5. Option B first cost 500000, annual operating cost 22500, resale value loss/year 50000, useful life 10.
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