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You are considering 2 equal-life mutually exclusive alternatives: Alternative P: i*_P = 6.9%, initial investment = $204,000 Alternative Q: i*_Q = 8.8%, initial investment =

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You are considering 2 equal-life mutually exclusive alternatives: Alternative P: i*_P = 6.9%, initial investment = $204,000 Alternative Q: i*_Q = 8.8%, initial investment = $250,000 Incremental cash flow (Q - P), Q minus P, or (P rightarrow Q): Delta i*Q - P = 12.3% If your MARR = 7.0%, what will be your recommendation? A. Recommend P, because i*_p MARR C. Recommend not P nor Q, but (Q - P), because Delta i*_Q - P > MARR and is rate D. Recommend DN (do nothing) You are considering 2 equal-life mutually exclusive alternatives: Alternative P: i*_P = 6.9%, initial investment = $204,000 Alternative Q: i*_Q = 8.8%, initial investment = $250,000 Incremental cash flow (Q - P), Q minus P, or (P rightarrow Q): Delta i*Q - P = 12.3% If your MARR = 7.0%, what will be your recommendation? A. Recommend P, because i*_p MARR C. Recommend not P nor Q, but (Q - P), because Delta i*_Q - P > MARR and is rate D. Recommend DN (do nothing)

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