Question: 3. Consider three mutually exclusive alternatives, each having an 5 year life First Cost Uniform annual benefit Salvage value $1100 130 $1000 118 $600 94
3. Consider three mutually exclusive alternatives, each having an 5 year life First Cost Uniform annual benefit Salvage value $1100 130 $1000 118 $600 94 750 750 500 If the minimum attractive rate of return is 10%, which alternative should be selected? Use the incremental analysis method. (20 pts)
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