Question: Given the following two alternatives, which one should be picked if i=8%? Use present worth analysis. A: First cost $4.000, Annual benefit -$1.500, Salvage value

Given the following two alternatives, which one should be picked if i=8%? Use present worth analysis. A: First cost $4.000, Annual benefit -$1.500, Salvage value = $1,500, Life = Syears B: First cost = $8,000, Annual benefit = $2,000, Salvage value = $2,000, Life = 10years

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