Question: Consider the following two mutually exclusive alternatives: Alternative B may be replaced with an identical item every 20 years at the same $150 cost and

Consider the following two mutually exclusive alternatives: Alternative B may be replaced with an identical item every 20 years at the same $150 cost and will have the same $24 uniform annual benefit. Using a 10% interest rate, and an annual cash flow analysis, determine which alternative should be selected.

A Cost Uniform annual benefit Useful life, in years $100 16 $150 24 20

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