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If you are the economic analyst, which alternative would you recommend when interest rate is 6% per year.

Use present worth analysis technique only.

System	Initial Cost	Annual Operating Cost	Overhaul Cost in year 4	Overhaul Cost in year 5	Salvage value	Expected life (years)
A	240,000 $	210,000 $	-	120,000 $	52,000 $	7
B	220,000 $	230,000 $	20,000 $	-	12,000 $	7