Question: 8 - 5 8 . Two alternatives, A and B , are under consideration. Both have a life of five years. Alternative A needs an
Two alternatives, A and B are under consideration. Both have a life of five years. Alternative A needs an initial investment of $ and provides a net revenue of $ per year for five years. Alternative B requires
an investment of $ and has an annual net revenue of $ All estimates are in actual dollars. Inflation is expected to be per year for the next five years, and the inflationfree real MARR is per year. Which alternative should be chosen?
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