Question: Data for project A and B are listed below. With interest of 12%, which project would be selected based on annual equivalent cost? Project A

Data for project A and B are listed below. With interest of 12%, which project would be selected based on annual equivalent cost?

Project A B
Initial cost $30000 $36000
annual maintenance cost $2000/year $ 2500/year
annual operating cost $6000/year $7000/year
life cycle 8years 8years

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