Question: A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: The salvage value at the end of

A firm is considering three mutually exclusive alternatives as part of a production improvement program.
The alternatives are:

The salvage value at the end of the useful life of each alternative is zero. At the end of 10 years, Alternative A could be replaced with another A with identical cost and benefits. The maximum attractive rate of return is 6%. Which alternative should be selected?

Installed cs S10,000 S15,000 $20,000 Uniform an ,625 ,530 1,890 benefit Usefl life, 10 20 20 in years

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