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You have been asked to evaluate two alternatives X and Y that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with

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You have been asked to evaluate two alternatives X and Y that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 14% per year? Why is yours the correct choice? $-25.000 $-75.000 Alternative First Cost Maintenance cost per Year Salvage Value Life S-8000 S-7000 $2.500 5 years $8.500 5 years The present worth of alternative X is $ and that of alternative Yis $ Alternative (Click to select) is selected by the company

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