Question: Consider two mutually exclusive alternatives: Alternative A Alternative B Y0 -$5000 ... Y0 -$5000 Y1 -$3000 ... Y1 $2000 Y2 $4000 ... Y2 $2000 Y3

Consider two mutually exclusive alternatives:

Alternative A Alternative B

Y0 -$5000 ... Y0 -$5000

Y1 -$3000 ... Y1 $2000

Y2 $4000 ... Y2 $2000

Y3 $4000 ... Y3 $2000

Y4 $4000 ... Y4 $2000

If the MARR is 8%, which alternative should be selected?

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