Question: A firm is considering two alternatives: At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth.

A firm is considering two alternatives:

A Initial cost Uniform annual benefits $10,700 $5500 2,100 1800 Salvage value at end of useful life Useful life, in year

At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth. If the MARR is 10%, which alternative should be selected?

A Initial cost Uniform annual benefits $10,700 $5500 2,100 1800 Salvage value at end of useful life Useful life, in years 4

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