Question: 4 Ch: 6 Using annual cash flow analysis (EUA), determine the better alternative. Assume that alternatives are replaced at the end of their useful lives.

4 Ch: 6 Using annual cash flow analysis (EUA), determine the better alternative. Assume that alternatives are replaced at the end of their useful lives. The interest rate is 9%. OPTIONS=> INITIAL COST ANNUAL MAINTENANCE ANNUAL BENEFIT SALVAGE AFTER LIFE LIFE IN YEARS MARR ALTX 4,000 1000 2,000 1,000 3 12% ALTY 6,000 500 2,500 2,000 7 12%

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