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ve alternatives stated tives have a 3-year 14-85 Consider two mutually exclusive alternati in Year-0 dollars. Both alternatives have life with no salvage value. Assume

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ve alternatives stated tives have a 3-year 14-85 Consider two mutually exclusive alternati in Year-0 dollars. Both alternatives have life with no salvage value. Assume the annual tion rate is 5%, a combined income tax rate of 340 and straight-line depreciation. The minimum attra tive after-tax rate of return (MARR) is 8%. Use rate of return analysis to determine which alternative is preferable. Year B A -$420 200 200 200 -$300 150 150 150

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