Question: Can I please get help with this question please Consider two alternatives; Type A and Type B. Type A has an initial cost of $70,000
Can I please get help with this question please
Consider two alternatives; Type A and Type B. Type A has an initial cost of $70,000 and a life of 8 years. Type B has an initial cost of $95,000 and a life of 12 years. The annual operating cost (AOC) for type A is expected to be $9,000, while the AOC for type B is expected to be $7,000. If the salvage values are $5,000 and $10,000 for type A and type B, respectively, the incremental cash flow value (using LCM) at the end of year 16 is: Less than $65,000 Between $65,000$70,000 Between $70,000$75,000 Higher than $75,000
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