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Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 13.5%/year. EOY A001 B002 C003 0 -$190 -$110 -$158

Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 13.5%/year.

EOY

A001

B002

C003

0 -$190 -$110 -$158
1 $75 $60 $88
2 $85 $60 $88
3 $95 $60 $88
4 $105 $70 $88

a) Alternative A001-

b) Alternative B002-

c) Alternative C003-

d) Which alternative should be recommended?

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