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Which project has the lower Equivalent Annual Cost? Project A has a life of 25 years comprising 10 years of set up time and the
Which project has the lower Equivalent Annual Cost? Project A has a life of 25 years comprising 10 years of set up time and the remaining operating time. Set up cost is $50 annually, and operating cost is $20 annually. Project B has a life of 35 years comprising 15 years of set up and the remaining as operating. Set up cost is $150 annually and operating cost is $2 annually. Assume r=10%
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