Question: Analyze the alternatives given below using capitalized cost at an interest rate of 13% per annum. What is the difference between the 2 alternatives? Alternative

Analyze the alternatives given below using capitalized cost at an interest rate of 13% per annum. What is the difference between the 2 alternatives?

Alternative A

Alternative B

Initial Cost, $

150,000

800,000

Operating Cost, $

50,000

12,000

Market Value EOL, $

8,000

1,000,000

Life, years

5

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