Question: For problems using compound interest factor tables to estimate interest rate, round to the nearest % in the table. Two pieces of equipment are being

 For problems using compound interest factor tables to estimate interest rate,

For problems using compound interest factor tables to estimate interest rate, round to the nearest % in the table. Two pieces of equipment are being considered for purchase. If interest is 5%, which piece of equipment should be purchased? Use Annual Cash Flow Analysis to solve: PW Cost EUAB Salvage Value Useful Life $6,000 $1,000 $1,200 12 years $4,500 $1,000 $700 3 years a. Calculate EUAW A b. Calculate EUAW B c. Which one is the best alternative? A or B

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